CURRENCY : Dollar Lower as Pound, Gold Prices Climb

The dollar edged lower against major foreign currencies in quiet trading Tuesday as the British pound continued to climb.

Gold prices rose again. Republic National Bank of New York reported a late bid of $449.60 an ounce, up from $447.30 late Monday and $443.25 last Friday.

Traders continued to focus on the British pound because it was the only currency that did not seem to be locked into a narrow trading range. Investors have been attracted to sterling because of high British interest rates.

The dollar maintained its ground after a Treasury Department auction of three-year notes proceeded about as predicted.

“It was exceptionally lackluster,” said Garrett Glass, vice president for foreign exchange at First National Bank of Chicago.

In Tokyo, where trading ends as Europe’s business day begins, the dollar closed at 124.63 Japanese yen, down from Monday’s 124.87. In London, it was quoted at 124.45 yen. At the end of trading in New York, the dollar closed at 124.38 yen, down from 124.81 Monday.

In London, the dollar fell against the British pound, which rose to $1.8825 from $1.8790 late Monday. Later in New York, the pound rose to $1.8843 from $1.8815 Monday.

Other late dollar rates in New York, compared to late Monday’s, included: 1.6780 West German marks, down from 1.6815; 1.3944 Swiss francs, down from 1.4001; 1.2380 Canadian dollars, down from 1.2385; 5.6905 French francs, down from 5.7060, and 1,247.35 Italian lire, down from 1,249.50.

Late dollar rates in Europe, compared to late Monday’s, included: 1.6783 West German marks, down from 1.6820; 1.3955 Swiss francs, down from 1.4010; 5.6905 French francs, down from 5.7075; 1.8815 Dutch guilders, up from 1.8805; 1,248.00 Italian lire, down from 1,250.00, and 1.2375 Canadian dollars, down from 1.2396.

Gold closed in Hong Kong at a bid $448.95, up from $446.66. The metal rose in quiet trading in Europe, closing at a bid of $446.50 in both London and Zurich, Switzerland.

On the Commodity Exchange in New York, gold bullion for current delivery was bid at $450.10, up from $447.30 late Monday.

Silver rose on the London market to a late bid of $6.45 an ounce, compared to Monday’s $6.43. On New York’s Comex, silver bullion for current delivery was bid at $6.57, up from $6.47.

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