Foreign Exchange for Monday, Sept. 15, 1986 : Dollar Falls Against Major Currencies
The dollar, pressured by lower U.S. interest rates, fell against all major foreign currencies except the Canadian dollar Monday in moderately active trading. Gold prices moved higher. Bullion was quoted at $417.50 an ounce at Republic National Bank in New York, up $2 from Friday’s bid.
“The dollar was broadly lower today, falling for the second consecutive day,” said Gary Dorsch, a currency analyst with G. H. Miller & Co. in Chicago. “The dollar was mostly lower today due to lower U.S. interest rates.”
Long-term bond prices rose a full point, or $10 for each $1,000 in face value in the credit markets.
Lower U.S. interests rates make dollar-denominated investments less attractive, depressing demand for the currency.
“The market is also debating whether we will see the foreign central banks cut their interest rates,” Dorsch said. “The market is fearing that they will continue to resist pressure to cut rates.”