Dollar Finishes Above 150 Yen in U.S. Trading : Traders Breathe Easier After North’s Testimony
The dollar was mostly higher in U.S. trading Tuesday--closing above the psychologically important 150 Japanese yen level for the first time in more than three months--following Lt. Col. Oliver North’s testimony before the Iran- contra congressional committees.
Gold prices were mixed. Republic National Bank in New York at 4 p.m. EDT quoted a bid for gold bullion of $443.75 an ounce, down from $448 late Monday.
Currency traders said there was general relief in the U.S. market that North did not implicate the Reagan Administration in his appearance before the committees.
“I don’t think it helped the dollar as much as it removed a potential source of weakness,” explained James Vick, senior trader for Manufacturers Hanover Trust Co.
Fears Relieved
“Everyone was fearing the worst,” Irving Trust Co. trader Carlos Torres said.
Dealers said the dollar also was helped by recent statements from Tokyo that the Bank of Japan would not intervene to move the dollar lower.
The dollar had fallen against most currencies in Europe over concern about the prospect of central bank intervention should the dollar take a sharp rise or fall.
“Once the European market closes, the (U.S.) market feels more relaxed,” Torres said.
In New York, the dollar rose to 150.25 yen, up from Monday’s 148.94 yen. It was the first time since March 20, when the dollar traded at 151.40 yen, that the U.S. currency closed above the 150 yen level, Vick said.
Falls Back in London
The dollar edged up in Tokyo to 149.45 Japanese yen from 149.25 yen on Monday. It fell back in London to 149.20 yen.
In London, the dollar fell against the British pound. It cost $1.6210 to buy one pound, up from $1.6160 on Monday. In New York, sterling fetched $1.6165, compared to $1.6235 on Monday.
Late dollar rates in New York, compared to late Monday, included: 1.8432 West German marks, up from 1.8370; 1.5380 Swiss francs, up from 1.5305; 1.32305 Canadian dollars, down from 1.32615; 6.13775 French francs, up from 6.1195, and 1,334.00 Italian lire, up from 1,330.50.
Other late dollar rates in Europe, compared to late Monday included: 1.8375 West German marks, down from 1.8390; 1.5310 Swiss francs, up from 1.5305; 6.1225 French francs, down from 6.1295; 2.0690 Dutch guilders, down from 2.0710; 1,329.75 Italian lire, down from 1,332.50, and 1.3242 Canadian dollars, down from 1.3280.
Gold bullion for current delivery closed at $443.80 an ounce on New York’s Commodity Exchange, down $2.50 from Monday’s close.
In London, gold fell to $442, compared to $443.50.
