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Dollar Mixed; Gold Prices Increase

Associated Press

The dollar was mixed Friday against key currencies in nervous but quiet trading. Gold prices rose. Bullion was quoted at $344.50 an ounce at Republic National Bank at 4 p.m EST, up $5.50 from Thursday’s late bid.

Currency dealers said the market quieted considerably at the end of a week of mainly hectic dealing dominated by uncertainty about the intentions toward the dollar of the big five Western industrialized nations. Finance ministers and central bank officials of the so-called Group of Five met this week in Washington.

Dealers said a predicted cut in the U.S. discount rate--the interest rate the Federal Reserve Bank charges on loans to commercial banks--also hurt the dollar.

“There is still an amount of speculation on a discount cut in the United States.” said William Orsini, senior commercial trader at Bank of Montreal’s New York office.

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Supporting the dollar was unease about increasingly hostile relations between the United States and Libya, Orsini said.


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