Dollar Sharply Higher Worldwide

The dollar rose sharply in worldwide trading Wednesday and, by one broad U.S. measure, it made its biggest one-day advance since 1978, as U.S. interest rates shot up in the bond market.

Gold prices were mixed. Republic National Bank in New York quoted gold bullion at $342.50 an ounce, down 10 cents.

The Federal Reserve Board’s index measuring the value of the dollar against 10 other currencies weighted on the basis of trade rose to 116.22, up 2.5 points, or 2.2%, from Tuesday’s 163.83. In percentage terms, it was the biggest increase the index has made in a single day since Nov. 1, 1978, when it rose 4.35%.

Despite the uncommonly big advance, the Fed’s dollar value index was still about 30% lower than it was one year ago.

In European trading, the dollar rose strongly against all major currencies except the Canadian dollar. Some dealers said the Canadian dollar was propped up by intervention, or purchases of the currency by government authorities.