Dollar Declines; Gold Prices Mixed

The U.S. dollar fell today against most major currencies in thin foreign exchange trading.

Gold prices were mixed.

Traders in Frankfurt said the dollar’s decline reflected pessimism about long-term prospects for the U.S. currency, absence of central bank support and a surprising general lack of demand for dollars at the year’s end.

No specific news affected the market, they said.

The dollar opened the trading day by falling in Tokyo to 159.00 Japanese yen from 161.95 yen Wednesday, the last trading day in Japan and in most European centers before the two-day Christmas holiday Thursday and Friday.

In London, the British pound rose to $1.4675 from $1.4570 Wednesday.

Other late European rates, compared to late rates Wednesday, included: 1.9468 West German marks, down from 1.9645; 1.6280 Swiss francs, down from 1.6415; 6.4375 French francs, down from 6.4700; 2.2010 Dutch guilders, down from 2.2190; 1,353.50 Italian lire, down from 1,363.00; and 1.3850 Canadian dollars, up from 1.3775.

Gold closed in Hong Kong at $391.20 an ounce, up from $390.50.

Bullion later fell in London to $389.50 from $390.75 late Wednesday. In Zurich, gold was unchanged at $390.50.