Foreign Exchange for Monday, Feb. 23, 1987 : Dollar Edges Up in Light Trading

The dollar edged higher Monday in light trading against most major currencies following a weekend agreement by the United States and five of its key trading partners to help stabilize exchange rates.

Gold prices were mixed. Republic National Bank in New York quoted a bid of$402.50 an ounce, down from $405.75 late Friday.

Currency dealers said the market failed to test the meaning of Sunday’s agreement to stabilize rates near current levels for an unspecified time. At the meeting, finance ministers from the United States, Britain, France, West Germany, Canada and Japan signaled their readiness to intervene to steady the dollar, which has lost more than 40% of its value against major currencies since 1985.

“I think the market is very hesitant,” Ronald Sapiro, head trader for Continental Illinois National Bank & Trust Co. in Chicago., said of Monday’s activities. “The market would like to sell dollars, but it’s afraid to sell in case of intervention.”