Foreign Exchange : Dollar Edges Higher; Gold Recovers
The dollar was narrowly higher against most major currencies in late trading Wednesday, after rising sharply earlier in the day on mounting speculation that the United States, Japan and West Germany might cooperate to stem the currency’s decline.
Gold prices recovered after tumbling $7 to $8 an ounce. Republic National Bank of New York quoted a bid for gold at $408.50 an ounce, up from $407 late Tuesday.
News reports from Japan said Japanese Finance Minister Kiichi Miyazawa would offer to cut his country’s discount rate 0.5 percentage point in exchange for U.S. intervention to stabilize the dollar.
Miyazawa was scheduled to meet late Wednesday with U.S. Treasury Secretary James Baker, making currency traders cautious.
The two finance officials were expected to hold a press conference Wednesday evening following their meeting.
“We’re all looking to know what the statement will be,” said Didier Javice, a trader for Goldman, Sachs in New York.
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