Dollar Turns Mixed in Light Trading

The dollar was mixed in light trading Thursday, steadying against the Japanese yen, rising relative to Continental European currencies but declining to its lowest level against the British pound since July 1983.

Gold prices declined slightly. Republic National Bank of New York quoted gold at $345 an ounce as of 4 p.m. EST, down from $345.75 on Wednesday.

Currency dealers said conflicting opinions on the exchange markets helped influence the dollar’s behavior.

Fed Chairman Paul A. Volcker has expressed concern about the dollar’s sharp depreciation in the past six months, and he said an abrupt decline might cause a flight of capital to other countries with stronger currencies.

But the Reagan Administration has expressed the desire to see a further fall in the dollar, arguing that it helps the U.S. economy by making exports more competitive and lessening the national trade deficit, which totaled $148.5 billion last year.