Foreign Exchange for Thursday, March 13, 1986 : Dollar Mostly Higher; Gold Mixed

The dollar rose against most major currencies except the Japanese yen and Canadian dollar Thursday because of what some dealers called a perception by investors that the U.S. currency cannot fall much further.

Gold prices rose in Europe but fell in late New York trading. Republic National Bank of New York said the metal was quoted at a bid price of $347.75 an ounce as of 4 p.m. EST, compared to $350 late Wednesday.

The dollar rose sharply in Europe after the Commerce Department released figures showing that U.S. retail sales fell 0.1% in February. This was less of a decline than had been widely expected and reinforced the Reagan Administration’s claim that the U.S. economy is growing healthier.

Dealers in Europe and the United States said a strengthening of U.S. interest rates also helped the dollar by making dollar-denominated securities more attractive. The dollar has fallen by 30% against some major currencies in recent months.