Foreign Exchange for Tuesday, Aug. 5, 1986 : Dollar Up Versus Most Key Currencies

The dollar rose against most key currencies except the British pound and the Canadian dollar on Tuesday amid trading dominated by reaction to the OPEC oil cartel’s accord aimed at boosting oil prices.

Gold prices fell. Republic National Bank in New York quoted gold at $359 an ounce late in the day compared to Monday’s bid of $360 an ounce.

Currency trading featured technical maneuvers by which investors increased their holdings of some currencies that might benefit from rising crude oil prices and reduced their holdings of currencies that might suffer. “Dollar trading today was extremely technical,” said Axel Coym, a vice president and chief trader of the European American Bank in New York. “The prospect of higher oil prices triggered some jockeying.”

Remarks by West German Finance Minister Gerhard Stoltenberg that he wanted to see the dollar above 2.1000 West German marks also encouraged dollar buying, currency dealers said.