CURRENCY : Dollar Firms Slightly; Gold Prices Mixed

The dollar firmed slightly against most major currencies in light, lethargic trading Wednesday.

Gold prices were mixed. Republic National Bank of New York quoted a bid of $456 for an ounce of gold as of 4 p.m. EDT, down from $456.75 late Tuesday.

Traders said the dollar moved in a narrow range. They noted there was some attempt to sell dollars after the Labor Department reported that consumer prices jumped 0.5% during March.

“But after the Consumer Price Index came out this morning, the market went back to sleep,” said Lou Calvello, a currency trader at Prudential-Bache Securities Inc.

“Everybody is getting irate that the market isn’t doing anything,” said David Godwin, chief foreign exchange dealer at Union Bank of Switzerland.

Trading Light in Europe

Godwin noted that investors are still inclined to sell dollars, but the threat that any selling will be met by central bank intervention keeps them holding onto the U.S. currency.

“People are just waiting for the dollar to break out of (the current) range, then we’ll see more activity,” he noted.

Trading also was lethargic earlier in Europe, where the dollar finished little changed.

In Tokyo, the dollar fell to a closing 123.90 Japanese yen from 124.37 yen at Tuesday’s close. Later, in London, it edged up to 123.95 yen. In New York, the dollar closed at 124.15 yen, down from 124.27 yen on Tuesday.

In London, the British pound was quoted at $1.8930, unchanged from Tuesday’s late rate. In New York, it cost $1.89125 to buy one pound, less expensive than Tuesday’s $1.8928.

Late Dollar Rates

Other late dollar rates in New York, compared to late Tuesday’s prices, included: 1.66485 West German marks, up from 1.66375; 1.37645 Swiss francs, up from 1.3760; 5.6540 French francs, down from 5.6590; 1,237.875 Italian lire, up from 1,237.75, and 1.28905 Canadian dollars, up from 1.22985.

Other late dollar rates in Europe, compared to late Tuesday’s rates, included: 1.6635 West German marks, up from 1.6625; 1.3745 Swiss francs, down from 1.3752; 5.6490 French francs, up from 5.6465; 1.8630 Dutch guilders, down from 1.8642; 1,234.50 Italian lire, down from 1,235.75, and 1.2283 Canadian dollars, down from 1.2337.

Gold prices were mixed. On New York’s Commodity Exchange, gold closed at $457 an ounce, down from $458.40 on Tuesday.

In earlier Zurich trading, gold rose to a late bid price of $457.50 from Tuesday’s late bid of $457 an ounce. In London, the metal was bid at $456.50, unchanged from Tuesday’s late price. Earlier, in Hong Kong, gold rose to a closing bid of $458.94 from $457.59 bid late Tuesday.

Silver closed at $6.439 an ounce on New York’s Comex, down from $6.451 on Tuesday.

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