CURRENCY : Dollar Sits and Waits for Friday Labor Report
The dollar was mixed against key currencies Wednesday in light domestic trading, which dealers attributed to a lack of economic news.
Gold prices rose slightly in the United States after falling in Europe and Asia. In New York, Republic National Bank quoted bullion at $444.40 an ounce as of 4 p.m. EDT, up from $443.25 on Tuesday.
Currency brokers in the United States said there was little to influence the dollar’s behavior, so the currency rose or fell marginally based on short-term trading strategies.
“We’re just sitting here in a very narrow range,” said James Hohorst, managing director of foreign exchange trading for Manufacturers Hanover Corp. in New York.
Some traders said the dollar was mildly affected by conflicting speculation about the Labor Department’s impending report on April unemployment, due Friday.
Stronger employment figures would imply greater demand for imports and higher inflation, which would erode the dollar’s value. Conversely, weaker employment figures could help ease fears of inflation and boost the dollar.
Currency markets were closed in Japan for a national holiday. In London, the dollar rose to 124.95 Japanese yen from 124.83 yen late Tuesday. But later in New York, the dollar traded at 124.68 yen, down from 125.15.
The British pound fell in London to $1.8650 from $1.8715. Later in New York, the pound fetched $1.8652, less valuable than $1.8683 on Tuesday.
Silver Up on Comex
Other late dollar rates in New York, compared to late Tuesday, included: 1.6779 West German marks, down from 1.6795; 1.3973 Swiss francs, down from 1.3988; 1.2355 Canadian dollars, down from 1.2357; 5.7020 French francs, down from 5.7115, and 1,249.50 Italian lire, up from 1,249.375.
Other late dollar rates in Europe, compared to late Tuesday, included: 1.6796 West German marks, up from 1.6770; 1.4000 Swiss francs, up from 1.3945; 5.7075 French francs, up from 5.6935; 1.8840 Dutch guilders, up from 1.8795; 1,250.50 Italian lire, up from 1,247.50, and 1.2353 Canadian dollars, up from 1.2294.
Gold fell in active European trading. In London, gold dropped to a late bid price of $444 an ounce from $445.50 late Tuesday. In Zurich, Switzerland, it dropped to $443.50 from $446. Earlier in Hong Kong, gold fell to $444.71, down from $446.57.
On the Commodity Exchange in New York, gold bullion for current delivery was quoted at $444.80, up $1.30.
Silver bullion fell in London to $6.35 an ounce, down from $6.39. On the New York Comex, silver for current delivery rose 2.9 cents to $6.327.
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