Foreign Exchange for Tuesday, Oct. 7, 1986 : Dollar Up Against Major Currencies

The dollar, pushed up by European central bank intervention, moved higher against major foreign currencies on Tuesday.

Traders, however, remained uncertain about what direction the dollar would take.

Gold prices also rose. Bullion was quoted at $441.50 an ounce at Republic National Bank in New York, up $2.75 from Monday’s bid.

Foreign exchange dealers said that concerted buying by central banks to support the dollar succeeded, although the dollar did not hold at its highest levels of the day.

The dealers said trading was hectic as the central banks’ purchasing became apparent.

The West German Bundesbank appeared to have bought between $100 million and $200 million during the morning and then held off as the dollar rose above 2 West German marks.

Frank Conte, vice president of Barclays Bank PLC, said there was a lot of corporate demand for dollars once the currency rose and stayed above 2 marks.