Dollar Finishes Higher While Gold, Silver Prices Fall

The dollar was higher against major world currencies Wednesday, although analysts said it weakened slightly late in the day. Gold and silver prices fell.

At the close of the day, Republic National Bank in New York quoted gold at $420 an ounce, down from $423 Tuesday.

Analysts said traders were nervous about the outcome of monetary talks in Washington, and discouraged when President Reagan said import restrictions against Japanese semiconductor chips, already announced, would take effect on April 17.

John Lynam, an analyst at Security Pacific National Bank’s New York office, said some of the dollar’s early strength came from technical factors.

It also was boosted by rumors that the Japanese finance ministry had been urging Japanese investors to buy more U.S. bonds, according to Bruce Brittain, an analyst at Salomon Bros.

He said some traders also were hoping that finance officials of the United States, Japan, West Germany, France, Britain, Canada and Italy--who began their latest round of talks Wednesday--would reaffirm a February agreement to stabilize the dollar.

Such an accord could send the dollar higher. Even so, Brittain said, the dollar was hitting its lows of the day toward late afternoon.

One factor contributing to that erosion was fear that the finance ministers might also fail to agree on a way to stabilize world currencies, said Fred Barth, chief trader at PBTC International Bank.

“A lot of people have been laying low, probably because what happens at the meeting could blow the dollar in either direction,” he said.

Barth said he believed Reagan’s announcement on import restrictions put a damper on the U.S. currency by late afternoon.

Accelerating trade tensions have been cited as one reason for the dollar’s recent decline.

In Tokyo, the dollar edged up to a closing 145.63 Japanese yen from Tuesday’s 145.25 yen, its lowest level since exchange-rate alterations in the late 1940s. Later, in London, it gained almost one yen to 146.60 yen. In New York later, it slipped to 146.15 yen in New York--still higher than its 145.60 yen New York price Tuesday.

In London, the British pound fell to $1.6130 from $1.6180 late Tuesday. In New York it cost $1.6156 to buy one pound, cheaper than Tuesday’s $1.6177 price.

Other late dollar rates in New York, compared with late Tuesday, were: 1.8295 West German marks, up from 1.8278; 1.5230 Swiss francs, up from 1.5146; 1.3060 Canadian dollars, up from 1.3057; 6.1138 French francs, up from 6.0775 and 1,304.50 Italian lire, up from 1,301.50.

Other late dollar rates in Europe, compared with late Tuesday, were: 1.8390 West German marks, up from 1.8260; 1.5260 Swiss francs, up from 1.5145; 6.1100 French francs, up from 6.0725; 2.0710 Dutch guilders, up from 2.0590; 1,308.50 Italian lire, up from 1,300.50 and 1.3074 Canadian dollars, up from 1.3070.

At the New York Commodity Exchange, gold sold for $420.20 an ounce, down from $422.20 late Tuesday.

Earlier in Europe, bullion jumped as much as $4 before losing some of its gains in profit-taking.

In London, gold rose to a late bid price of $422 an ounce, up from $419.50 bid late Tuesday. In Zurich, it rose to $420 an ounce, up from $419 bid late Tuesday.

Earlier, in Hong Kong, gold rose to a closing bid of $423.07 from $420.44 bid at Tuesday’s close.

Silver, which has gained more than one dollar an ounce in the last three weeks, pushed up to $6.72 in early trading but then slipped back to a late bid of $6.62, down from $6.66 bid late Tuesday.