FINANCIAL MARKETS : Currency : Dollar Advances Sharply; Gold Drops

The dollar rose sharply against the major foreign currencies Tuesday as a bullish sentiment returned to trading floors.

Gold prices fell. Republic National Bank in New York quoted a late bid of $458.60 for an ounce of gold, down from $460.05 late Monday.

Traders in New York said the dollar was down at the start of the day but then picked up ground on mostly technical factors.

In London, the British pound fell to its lowest level in a month, closing at $1.6330, down from $1.6440 late Monday. In later trading in New York, the pound fell further to $1.62725 from $1.63915.

In Tokyo, the dollar rose 1.83 Japanese yen to a closing 146.05 yen, its highest since Aug. 18 and its biggest single-day rise since June 17. In New York, the dollar rose to 146.565 yen from 144.38 yen.

Other late dollar rates in New York, compared to late Monday’s rates, included: 1.84175 West German marks, up from 1.82815; 1.5307 Swiss francs, up from 1.51615; 6.1220 French francs, up from 6.0870; 1,327.50 Italian lire, up from 1,318.25, and 1.31225 Canadian dollars, up from 1.30865.

In London, gold fell to a late bid price of $459.50 an ounce from $461.90 late Monday. In Zurich, it fell to $460 from $462.50. Earlier, in Hong Kong, gold dropped to $458.95 from $461.83. On the Commodity Exchange in New York, gold fell to $458 from $460.

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