Foreign Exchange : Dollar Drifts Higher; Gold Up in U.S.

The dollar drifted higher against most major foreign currencies in thin trading on Monday as exchange markets awaited further news on the U.S. economy and interest rates.

Gold rose in the United States after falling in Europe. Republic National Bank in New York quoted gold bullion at $380.50 an ounce, up $6.25 from Friday.

Trading in precious metals and foreign exchange markets was quiet and trendless, partly because markets in London and Hong Kong were closed for public holidays.

Traders said activity also was quieted by a lack of new information on the U.S. economy’s health and on whether major U.S. trading partners would match last week’s discount rate cut by the Federal Reserve Board.

The Fed and the White House have been pressuring the central banks of West Germany and Japan to match the 0.5 percentage point reduction in the Fed’s key interest rate, but with no apparent success.