FINANCIAL MARKETS : Currency : Dollar Down; Gold Higher

Associated Press

The dollar retreated Thursday against nearly all key currencies on worldwide markets.

Gold prices were mostly higher. Republic National Bank in New York quoted a bid of $461 for an ounce of gold as of 4 p.m. EDT, up $3 from late Wednesday.

Technical factors continued to dominate the market as most traders awaited next week’s release of the government’s merchandise trade report for August.

“At the moment I don’t see any fundamental basis for forcing the dollar down,” said George DeLuna, a vice president and trader for Irving Trust.


DeLuna said traders were met with resistance when trying to push the dollar higher, “so the market is now testing the downside. Everyone likes to sell the dollar all of a sudden.”

In Tokyo, where the business day ends before Europe’s business day begins, the dollar closed at 145.18 Japanese yen, down from Wednesday’s 146.43 yen. The dollar was quoted at 145.20 yen in Europe. Later, in New York, the dollar stood at 144.175 yen, down from 145.19.

The dollar fell against the British pound in London, where it cost $1.6420 to buy one pound Thursday, more expensive than $1.6395 late Wednesday. Sterling fetched $1.64925, up from $1.64375.

Other late dollar rates in New York, compared to late Wednesday, included: 1.8131 West German marks, down from 1.82275; 1.5100 Swiss francs, down from 1.52125; 1.30655 Canadian dollars, up from 1.30375; 6.0400 French francs, down from 6.0685, and 1,308.50 Italian lire, down from 1,317.50.

On the Commodity Exchange in New York, gold bullion for current delivery rose to $461.40 an ounce from $458.10.

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