Political Storm Over Iran Deal Sinks Dollar

The U.S. dollar sagged against major currencies in European and Asian trading today. Gold prices were higher.

Foreign exchange dealers said the dollar was hurt by the political storm in Washington over arms sales to Iran.

In London, one British pound cost $1.4355, more expensive than Thursday’s late bid of $1.4295.

Other late rates compared to Thursday: 1.9750 West German marks, down from 1.9895; 1.64375 Swiss francs, down from 1.6595; 6.4725 French francs, down from 6.5150; 2.2335 Dutch guilders, down from 2.2485; 1,371.15 Italian lire, down from 1,378.37, and 1.3845 Canadian dollars, down from 1.3848.

Earlier in Tokyo, the dollar closed at 162.20 Japanese yen, down from 162.80 Thursday.

Gold cost more today. Dealers said the price was boosted by a few large orders in Europe, which had a disproportionate effect in a thin market.

The late London price was bid at $389.75 an ounce, up from $383.50 Thursday.

The late bid price in Zurich was $389, up from $383.50 Thursday.

In Hong Kong earlier, gold closed at $386.44, up from $382.58 Thursday.

Silver bullion traded late in London at a bid $5.37 an ounce, up from $5.27 Thursday.