Dollar Rises Against Most Key Currencies

Associated Press

The U.S. dollar rose Wednesday against all key currencies except the Canadian dollar in quiet European trading. Gold prices fell.

Currency dealers said the dollar made sharp gains amid rumors that the Bank of Japan intervened in New York trading late Tuesday to support the dollar, which had fallen to postwar lows against the Japanese yen.

But the American currency slipped slightly in late trading after the U.S. government said its gross national product figures for the fourth quarter of 1985 had been revised downward from a preliminary 1.3% rise to a mere 0.7% rise, dealers said.

In Tokyo, the dollar rebounded to a closing 176.80 yen, up from Tuesday's 174.90, a record closing low since World War II. Later, in London, the dollar rose further to 177.07 yen.

In London, the British pound slipped to $1.4755, down from $1.47825 late Tuesday after British banks cut base lending rates from 12.5% to 11.5%.

Sterling, however, was boosted by indications that the Organization of Petroleum Exporting Countries meeting in Geneva might agree to set production levels to stabilize falling oil prices. Britain is the world's fifth-largest oil producer, but not a member of the 13-nation OPEC cartel.

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