CURRENCY : Dollar Declines Broadly in Light, Narrow Trading

The dollar fell against all major currencies except the Canadian dollar Thursday in light, end-of-the-month activity.

Gold prices were mixed. Republic National Bank quoted bullion at $450 an ounce as of 4 p.m. EDT, compared to $450.80 late Wednesday.

Traders said the dollar continued to move in a very narrow range. “There’s really nothing going on,” said David Godwin, chief foreign exchange dealer at Union Bank of Switzerland.

Most of the day’s activity centered on the British pound, which traders sold ahead of the British government’s release of its monthly trade report today.

“Fear that the numbers would be bad prompted some selling of sterling,” said Curtis Perkins, a trader at Chemical New York Capital Markets Group.

He noted that sterling was the only currency to move out of its trading range.

Foreign currency dealers said there was little positioning going on ahead of the Commerce Department’s release today of its index of leading economic indicators for March.

Drops Against Yen

The dollar finished mostly lower in Europe, where trading also was quiet. Dealers there were reconciling their positions at the end of the month.

“It’s more position-squaring than anything else,” said a trader at a major German bank in Frankfurt. “People don’t feel like keeping a high profile around the end of the month.”

In Tokyo, where trading ends before Europe’s business day begins, the dollar fell 0.17 Japanese yen to a closing 124.82 yen. Later in London, it was slightly lower at 124.65 yen. In New York, the dollar closed at 124.515 yen, down from 124.865 yen.

In London, it cost $1.8755 to buy one British pound late in the day, slightly more expensive for buyers than Wednesday’s $1.8750.

In New York, it cost $1.87385 to buy one pound, more expensive than $1.8735 on Wednesday.

Other late dollar rates in New York, compared to late Wednesday, included: 1.6694 West German marks, down from 1.67475; 1.38425 Swiss francs, down from 1.3870; 5.6710 French francs, down from 5.6915; 1,242.375 Italian lire, down from 1,245.50, and 1.2302 Canadian dollars, up from 1.22835.

Other late dollar rates in Europe, compared to late Wednesday, included: 1.6705 West German marks, down from 1.6785; 1.3832 Swiss francs, down from 1.3905; 5.6685 French francs, down from 5.69625; 1.8715 Dutch guilders, down from 1.8810; 1,240.50 Italian lire, down from 1,246.82, and 1.2296 Canadian dollars, up from 1.2278.

Silver Declines

Gold prices were mixed. On New York’s Commodity Exchange, gold closed at $450.60 an ounce, down from $452.80 on Wednesday.

In London, gold sold for a late bid of $451, down from $452.

In Zurich, Switzerland, the bid price in listless trading was $452, up from $451.50.

Earlier in Hong Kong, gold rose $2.57 to close at a bid price of $453.54.

Silver closed at $6.466 an ounce on New York’s Comex, down from $6.498 on Wednesday.

In London, the metal finished at a bid of $6.50 an ounce, up from $6.49.

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