Dollar Advances in U.S. and Europe
The dollar rose in Europe and the United States on Tuesday after falling to another post-World War II low in Tokyo against the Japanese yen.
Gold prices edged down. Bullion was quoted at $342.50 an ounce at Republic National Bank at 4 p.m. EDT, a drop of 10 cents from Monday’s bid.
The dollar was boosted by a report from the economic summit of seven industrialized nations that West Germany does not want a lower dollar and would intervene to support the currency if it continues to fall, dealers said. The dollar closed at 165.20 yen in Tokyo, where leaders of the major industrialized democracies closed the summit with a communique pledging to stabilize currency markets, but without measures to restrain the yen.
The dollar was worth 170.70 yen at Friday’s close in Tokyo and fell to a record low of 165.80 yen in European trading Monday. Tokyo exchange markets were closed Monday for a holiday. In London late Tuesday, the dollar was quoted at 166.50 yen.
