Dollar Declines; Gold Prices Up in U.S.
The dollar sank on Wednesday in response to President Reagan’s announcement of a possible new international monetary conference.
The Canadian dollar staged a strong comeback.
Gold prices turned up in the United States after declining abroad. Bullion was quoted at $336.25 an ounce at 4 p.m EST at Republic National Bank, up $1 from Tuesday’s late bid.
A London foreign exchange dealer said that the markets took Reagan’s announcement and his later budget details as a reason to sell dollars.
The President, faced with a record trade deficit, said in his State of the Union address Tuesday night that he had ordered a year-long study to determine whether an international conference should be held to discuss the “role and relationship” of the world’s major currencies.
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