Dollar Retreats for Fourth Straight Day; Gold Up $10
The dollar fell Thursday against most major currencies except the Japanese yen and the Canadian dollar, marking its fourth straight day of decline in active trading.
Gold prices were mixed, after jumping more than $10 an ounce on Wednesday. Republic National Bank in New York quoted gold at $463.50 an ounce, down from $465 late Wednesday.
The dollar extended the retreat which has pushed it to three-month lows against the West German mark and Japanese yen. Without significant new developments to affect the dollar’s movements it was buffeted by unconfirmed market rumors.
Currency traders said speculation was led by an unconfirmed rumor that finance ministers of the “Group of Five” major industrialized countries planned to hold an emergency meeting Monday in Switzerland, possibly to agree to lower the group’s targets for the desired value of the dollar against other currencies.
“The feeling is that if the G-5 does get together, they will agree to put the dollar lower,” said Beth Firuta, a corporate trader for Marine Midland Bank.
Traders said there were no signs of central banks intervention to support the dollar, as has occurred in recent trading sessions.
In Tokyo, the dollar rose to 141.20 Japanese yen from 141.13 yen at Wednesday’s close. Later in London, the dollar traded at 141.00 yen. In New York the dollar rose to 140.97 yen from 140.85 yen late Wednesday.
In London, the British pound rose to $1.6590 from $1.6510 late Wednesday. Later in New York, sterling rose to $1.6580 from $1.6531 late Wednesday.
Gold rose in London to a late bid of $463.50 an ounce from $462.50 late Wednesday. In Zurich, gold was quoted at $464, unchanged from Wednesday’s late price.
Earlier, gold rose in Hong Kong to a closing bid of $463.48 from Wednesday’s $456.64.
Gold for September delivery closed at $464 an ounce at the New York Commodity Exchange, down from $465.30 late Wednesday.
Silver fell in London to a late bid of $7.69 an ounce from $7.74 on Wednesday. At New York’s Comex, silver for September delivery closed at $7.700 an ounce, down from $7.785 late Wednesday.
