Dollar Again Drops Against Yen

The dollar dived to another post World War II low against the Japanese yen and declined against other major currencies Monday amid reports that summit partners have agreed on a modification in the international monetary system.

Gold bullion prices were little changed. The Republic National Bank of New York quoted gold at $342.50 an ounce as of 4 p.m. EDT, down 50 cents from Friday’s bid. Masakazu Miyamori, treasurer of the New York branch of Sanwa Bank, said some currency dealers had expected that leaders of the seven major industrial countries meeting in Tokyo would favor stabilizing the dollar’s depreciation against the Japanese yen. When reports indicated that the seven countries wouldn’t launch a major effort to steady the dollar-yen exchange rate, the dollar sank, he said.

In early U.S. dealings the dollar slid to about 164 yen, a level which Miyamori said represented the lowest level for the dollar in the post-war era. The dollar recovered and finished at 165.3 yen.