Foreign Exchange for Wednesday, Oct. 8, 1986 : Dollar Advances Versus Yen, Pound

The dollar rose against the Japanese yen and British pound but fell relative to other key currencies in light trading on Wednesday, reflecting dealer nervousness about possible European bank intervention and the direction of interest rates.

Gold prices rose in London, remained unchanged in Zurich and fell in New York. Republic National Bank of New York quoted gold at a bid price of $437.50 an ounce, down $4 from Tuesday.

“There was a lot of noise today but not a lot of trading,” said Peter Rogers, chief foreign currency dealer at the New York branch of Banco di Sicilia. “Though the market is still bearish toward the dollar, a lot of people are still concerned about intervention from central banks in Europe.”

Several European central banks, led by West Germany’s Bundesbank, intervened in foreign exchange markets Tuesday, buying up dollars in a concerted effort to drive the currency higher. The dollar jumped in reaction.