CURRENCY : Japan Trade Report Sends Dollar Lower

News of a widening trade gap between the United States and Japan pushed the dollar lower against the Japanese yen in the currency markets Tuesday, while gold prices inched up.

At Republic National Bank of New York, gold was bid at $477.50 an ounce at 4 p.m. EST, up from $476.40 late Monday.

The dollar was hit hardest in Asia, where the trading day begins, closing in Tokyo at 128.90 Japanese yen, down from 130.50 Monday.

Later, in London, the dollar was quoted at 129.15 yen, and in New York, it traded at 128.675 yen, down from 129.60 late Monday.

The dollar lost ground in late domestic trading against most other major currencies but managed slight gains against the British pound and the West German mark compared to late Monday levels.

Analysts said the report on the Japanese trade surplus, although expected, had revived worries about the dollar, which only Friday had rallied in response to a positive trade report from U.S. officials.

“The numbers from Japan threw a little cold water on the dollar,” said James Vick, a senior corporate trader for Manufacturers Hanover Corp.

In London, it cost $1.775 to buy one pound late Tuesday, more expensive than Monday’s $1.77. But later in New York, sterling fetched $1.775, less than $1.777 late Monday.

Other late dollar rates in New York, compared to late Monday, included: 1.688 West German marks, up from 1.678; 1.367 Swiss francs, down from 1.368; 5.659 French francs, down from 5.663; 1,232.50 Italian lire, down from 1,235.25, and 1.286 Canadian dollars, down from 1.287

Gold rose in London and Zurich to a late bid price of $477 an ounce, compared to late Monday’s $475 in London and $475.50 in Zurich. Earlier, the metal closed in Hong Kong at a bid of $479.07, up from $477.91.

At the New York Commodity Exchange, gold bullion for current delivery was quoted at $477.50 an ounce, up from $476 late Monday.

Silver prices fell marginally in London to a late bid price of $6.68 an ounce, compared to Monday’s $6.69.

At the Comex, silver bullion for current delivery was bid at $6.690 an ounce, up from $6.670.

Tables, Page 10