Foreign Exchange for Thursday, July 10, 1986 : Dollar Off Against Most Currencies

The dollar declined against most key currencies on Thursday as dealers awaited an interest rate reduction that the Federal Reserve Board later announced as trading wound down in the United States.

Gold also fell. The Republic National Bank in New York quoted gold at $347.25 an ounce, or 75 cents lower than Wednesday’s bid.

David Arbesman, first vice president at Prudential-Bache Securities Inc., said the dollar drifted lower after the central bank said it was cutting its discount rate to 6% percent from 6.5%. But the widely expected move had a limited impact on the dollar in light dealings late in the day.

Currency dealers say business has been slowed lately by intense speculation about the policy course that world monetary authorities would chart for the weeks ahead. It had been assumed that weak U.S. economic activity would induce the Fed to cut its bellwether loan rate, which is the interest it charges on loans to financial institutions.