CURRENCY : Dollar Slips Against Most Currencies in N.Y. Trading

The dollar turned in a narrowly mixed performance Tuesday, slipping against major currencies in foreign exchange trading in New York after edging up against most of them in earlier dealings in Europe.

Gold prices fell. Republic National Bank in New York quoted a bid for gold of $480.75 an ounce as of 4 p.m. EST, down $1.05 from Monday’s late bid.

Analysts said speculation that central banks were ready to step into the markets discouraged any sharp movements in the currency. Trading was subdued.

Ian Spence, chief foreign exchange dealer at Manufacturers Hanover Trust Co., said the central banks appear to have “maneuvered the market” into a period of low volatility in which the dollar trades in a narrow range.

“There is no real reason to go crazy buying or selling the dollar,” he said. “They have successfully defined the market over the past few trading days.”

Traders were also described as being nervous in advance of the release on Friday of the U.S. merchandise trade report for November.

“Everyone is still trying to anticipate what these numbers will mean,” said James T. McGroarty, vice president for foreign exchange at Discount Corp.

The Japanese central bank reportedly intervened during trading in Tokyo, but European central banks stayed on the sidelines during dealings there.

As the trading day began, the dollar fell to 128 Japanese yen in Tokyo from 128.50 yen on Monday. Later in London, it slipped to 127.60. By the end of trading in New York, the dollar was down to 127.45, compared to 128.45 late Monday.

In London, the British pound fell to $1.8185 from $1.8230 late Monday. But later in New York, the pound reversed course and rose to $1.8215 from $1.8190 late Monday.

Late dollar rates in New York, compared to late rates Monday, included: 1.6340 West German marks, down from 1.63965; 5.5165 French francs, down from 5.5355; 1.3340 Swiss francs, down from 1.3402; 1,202 Italian lire, down from 1,205.50, and 1.28425 Canadian dollars, down from 1.2867.

Late dollar rates in Europe, compared to late rates Monday, included: 1.6360 West German marks, up from 1.6355; 1.3365 Swiss francs, up from 1.3348; 5.5275 French francs, up from 5.5215; 1.8390 Dutch guilders, up from 1.8370; 1,203.50 Italian lire, down from 1,203.95, and 1.2847 Canadian dollars, down from 1.2900.

Gold bullion prices moved lower around the world.

On New York’s Commodity Exchange, gold for current delivery fell $1.20 an ounce to $480.70, compared to Monday’s close.

In London, gold fell to $481 an ounce from $483.50 late Monday. In Zurich, the metal fell to $481.50 an ounce from a $484 bid late Monday.

Earlier, gold closed in Hong Kong at $483.26 an ounce, down from $486.16 late Monday.

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