CURRENCY : Dollar Drifts Downward in Light Trading
The dollar drifted aimlessly in light dealings Thursday and finished the day marginally higher against several major currencies.
Gold prices edged downward. Republic National Bank of New York said gold was bid at $453.10 an ounce as of 4 p.m. EDT, down from $453.75 late Wednesday.
Foreign exchange dealers said the dollar was little affected by an upward revision of first-quarter figures for the U.S. gross national product to 3.9% from the 2.3% reported earlier.
Fears that the economy’s strength would add to inflation were restrained by a companion report saying the annual inflation rate edged down to just 1.7% in the first quarter.
The dollar declined slightly late in the U.S. trading session, but nothing nudged it out of the narrow range in which it has remained for weeks.
“We’re anticipating it’s going to be a pretty dull summer,” said James Chorek, an analyst for Money Market Services Inc. in Chicago.
In London, the British pound fell to $1.8625 late Thursday from $1.8650. Later in New York, sterling fell to $1.8611 from $1.8631.
The dollar closed in Tokyo at 124.50 Japanese yen, up from 124.30 late Wednesday. In later London trading, the dollar was quoted at 124.43 yen. At the end of the trading day in New York, the dollar rose to 124.58 yen from 124.42.
Other dollar rates in late U.S. trading, compared to late Wednesday’s rates, included: 1.7086 West German marks, up from 1.7064; 1.4233 Swiss francs, down from 1.4238; 5.7565 French francs, down from 5.7583; 1,267.75 Italian lire, up from 1,265.38, and 1.2364 Canadian dollars, down from 1.2427.
Other late dollar rates in Europe, compared to late Wednesday’s rates, included: 1.7080 West German marks, up from 1.7045; 1.4257 Swiss francs, up from 1.4245; 5.7620 French francs, up from 5.7550; 1.9125 Dutch guilders, up from 1.9090; 1,268.00 Italian lire, up from 1,264.50, and 1.2374 Canadian dollars, down from 1.2434.
In Hong Kong, gold closed at $452.42 an ounce, down from $460.27 late Wednesday.
Later, gold fell to a bid $453.30 in London, down from $454, and to $454 bid in Zurich, Switzerland, down from $454.50. At the end of the trading day, gold bullion for current delivery fell to $454.10 on the Commodity Exchange in New York, from $454.40 late Wednesday.
Silver bullion traded late in London at $6.63 bid an ounce, down from $6.67. On New York’s Comex, silver bullion for current delivery rose to $6.610 from $6.592.
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