Dollar Up Against Major Currencies

The dollar strengthened against major currencies on Thursday, as foreign exchange markets awaited further news on the U.S. trade deficit and any coordinated action to stabilize the currency.

Gold prices were higher in the United States and mixed in Europe. Republic National Bank in New York quoted gold bullion at $412 an ounce, up from $410.20 on Wednesday.

The dollar was bolstered by the Commerce Department’s report that durable goods orders rose 0.9% in December, as the key civilian demand category had its biggest gain in almost three years. The category is seen as signalling industry plans to expand or modernize facilities, with rising orders bullish for the dollar.

Also supporting the dollar was position squaring by traders expecting central banks to intervene in support of the dollar if U.S. trade figures for December, scheduled to be released Friday, show little improvement in the U.S. trade deficit, analysts said.