Dollar Falls Again Despite Intervention; Gold Soars

The dollar plunged against the Japanese yen again Friday, despite central bank intervention. It also fell against other major currencies as well.

Gold prices soared. At Republic National Bank in New York, the precious metal sold for $422 an ounce at 4 p.m., up $10.90 from Thursday’s $411.10.

At the New York Commodity Exchange, it stood at $422.70, up $10.20. Earlier in Europe, it jumped $5 in Zurich and $6.30 in London.

Meanwhile, the dollar fell sharply the yen, standing at 147.20 yen in New York late Friday, compared to Thursday’s 149.48 yen.

Analysts said most of the dollar’s weakness against the yen came from selling that took place in Japan and Europe before U.S. trading began, pointing out that New York activity opened at about the 147.75 level.

They said much of the decline resulted from corporate selling by Japanese companies, which have been especially shaken since the dollar first dipped below the psychologically important 150-yen level in Tokyo on Tuesday.

In Tokyo, where the trading day begins, the dollar closed at 149 yen, down from 149.40 yen at Thursday’s close and 151.53 yen last Friday. The dollar dipped Tuesday to 148.80 yen, its lowest level since the late 1940s.

Tokyo traders said the Bank of Japan bought an estimated $300 million to $500 million during the Tokyo morning session. Bank of Japan Governor Satoshi Sumita said the central bank would continue to act, as necessary, to maintain a stable dollar-yen rate.

Later in London, the dollar dropped to 147.65 yen despite moves by the West German, French, Japanese and U.S.