CURRENCY : Dollar Finishes Mixed as Investors Focus on Yen

The dollar finished mixed in dull trading Tuesday as buyers focused their attention on other major currencies.

Gold prices declined. Republic National Bank of New York quoted a bid price for gold of $448.65 an ounce as of 4 p.m. EST, down from Monday’s late bid of $449.45.

Currency dealers said the dollar traded in a narrow range in lackluster activity. “There was a lot of activity but no results--the dollar didn’t go anywhere,” said Robert Ryan, a senior trader at Irving Trust Co.

As the dollar languished, investors turned to other currencies, namely the Japanese yen. “People seem to be buying yen against mostly anything else these days,” said Lou Calvello, a foreign exchange trader with Prudential-Bache Securities Inc.

Dealers both at home and in Europe said Japanese financial institutions are likely to continue to buy yen as the Japanese fiscal year draws to a close on March 31.

“It will be interesting to see where the Japanese money will go after the end of their tax year,” Ryan said.

In European dealings, the dollar finished slightly higher against most major currencies, but most of the day’s activity occurred in trades in other currencies.

In Tokyo, where the business day ends as Europe’s begins, the dollar closed at 127.07 yen, down 1.28 yen from last Friday. The Japanese markets were closed for a national holiday on Monday.

Later, in London, the dollar was quoted higher at 127.10 yen. In New York, the dollar closed at 127.02 yen, up from 126.92 on Monday.

In London, it cost $1.8300 to buy one pound, more expensive than $1.8285 late Monday. Later, in New York, it cost $1.8330 to buy one pound, more expensive than Monday’s $1.8297.

Other late dollar rates in New York, compared to late Monday, included: 1.69175 West German marks, up from 1.6894; 1.39895 Swiss francs, up from 1.3986; 5.7500 French francs, down from 5.7545; 1,252.825 Italian lire, up from 1,249.00, and 1.24575 Canadian dollars, down from 1.24905.

Other late dollar rates in Europe, compared to late Monday, included: 1.6935 West German marks, up from 1.6880; 1.4015 Swiss francs, up from 1.3970; 5.7540 French francs, up from 5.7380; 1.9015 Dutch guilders, up from 1.8970; 1,253.25 Italian lire, up from 1,249.25, and 1.2468 Canadian dollars, down from 1.2494.

Gold prices declined. On the New York Commodity Exchange, gold closed at $448.70 an ounce, down from $450.20 late Monday.

Gold fell in London to a late bid price of $448.75 an ounce, compared to late Monday’s $449.50. In Zurich, Switzerland, gold closed at a bid $448.50, down from $450.50 late Monday. Earlier, in Hong Kong, gold rose $3.61 an ounce to close at $451.87.

Silver rose to $6.465 an ounce on New York’s Comex from Monday’s $6.447. In London, silver traded at a late bid price of $6.46 an ounce, down from Monday’s $6.47.

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