Dollar Declines in Moderate Trading
The dollar fell against all major foreign currencies except the British pound in moderately active trading on Monday.
Traders attributed the dollar’s decline to the lack of agreement by the Group of Five finance ministers on concerted action to stabilize exchange rates and lower interest rates at their weekend meeting in Washington.
Gold prices fell.
Bullion was quoted at $423 an ounce at Republic National Bank in New York, down $3.50 from Friday’s bid.
An agreement last year by the Group of Five--the United States, France, West Germany, Japan and Britain--had halted the dollar’s record-breaking surge.
John Prout, head of currency options trading at Donaldson Lufkin & Jenrette Inc. said: “I think the key, of course, is the reaction to the whole G-5 weekend that we just had.”
Frank Christie, a vice president at Chase Manhattn Bank, said: “Everything focused on that.”