Dollar Gains in Active Trading; Gold Climbs

The U.S. dollar rose against nearly all major currencies in lively early trading in Europe today, boosted by a Japanese announcement of international intervention to revive the battered currency.

Gold prices also rose but fell back as the dollar strengthened.

In Tokyo, where trading ends before Europe’s business day begins, the dollar closed at 141.85 Japanese yen, up from the record closing low of 141.35 yen it hit on Tuesday.

The dollar recovered after opening at a record low of 140 yen, the lowest level since modern exchange rates were introduced in the late 1940s.

Later, in London, the dollar was quoted at 142.45 yen.

Other dollar rates at midmorning, compared to late Tuesday: 1.8132 West German marks, up from 1.7910; 1.4950 Swiss francs, up from 1.4855; 6.0360 French francs, up from 5.9825; 2.0420 Dutch guilders, up from 2.0320; 1,294.50 Italian lire, up from 1,282.50, and 1.3170 Canadian dollars, down from 1.3180.

In London, the dollar rose against the British pound, which was quoted at $1.6255--cheaper than $1.6290 on Tuesday.

Gold opened in London at a bid price of $447 an ounce, compared to late Tuesday’s $441.50. At mid-morning today, the city’s five major bullion dealers fixed a recommended price of $445.50.

In Zurich, the bid price was $443.75, up from $442.50.

Earlier, in Hong Kong, gold rose $3.38 to close at a bid $442.77.

Silver prices also rose strongly. The metal was quoted in London today at a bid price of $7.16 an ounce, up from Tuesday’s $7.06.