CURRENCY : Dollar Mostly Higher Despite Intervention
The dollar rose modestly against several major currencies but fell against the Japanese yen Thursday in light trading as the West German central bank continued to try driving down the U.S. currency.
Gold prices were slightly higher. Republic National Bank of New York said gold was bid at $438.90 an ounce as of 4 p.m. EDT, up from $438.75 late Wednesday.
The dollar had fallen slightly in Europe but recovered as traders who had sold dollars short bought the U.S. currency after running into resistance in their efforts to drive it down, said Peter Hanson, a vice president at Bear, Stearns & Co.
Some traders were looking forward to market reaction to today’s U.S. unemployment figures and next Friday’s U.S. trade report.
The dollar was put under some pressure by repeated but apparently modest dollar sales by the West German central bank, dealers in Europe said.
In London, the dollar fell against the British pound. It cost $1.7180 to buy one pound, more expensive than $1.7130 late Wednesday. But later in New York, the pound fell to $1.7134 from $1.7157 late Wednesday.
In Tokyo, where the business day ends before Europe’s begins, the dollar fell to a closing 132.40 Japanese yen from 133.53 at Wednesday’s close. In London, the dollar was trading at 131.70 yen. Later in New York, the dollar ended at 132.73 yen, up from its levels late in London, but down from 133.38 late Wednesday in New York.
Other late dollar rates in New York, compared to late Wednesday’s rates, included: 1.8221 West German marks, up from 1.8207; 1.5151 Swiss francs, up from 1.5124; 1.2080 Canadian dollars, up from 1.2072; 6.1325 French francs, down from 6.1365, and 1,349.75 Italian lire, down from 1,350.00.
Other late dollar rates in Europe, compared to late Wednesday’s rates, included: 1.8161 West German marks, down from 1.8217; 1.5100 Swiss francs, down from 1.5135; 6.1140 French francs, down from 6.1315; 2.0440 Dutch guilders, down from 2.0515; 1,346.50 Italian lire, down from 1,351.75, and 1.2050 Canadian dollars, down from 1.2168.
In Hong Kong, gold closed at $441.62 an ounce, up from $441.05 late Wednesday.
Gold rose in London to a late bid of $440.25 from $436.75. In Zurich, Switzerland, gold closed at a bid $441, compared to $437.50.
At the close of trading on the Commodity Exchange in New York, gold bullion for current delivery was bid at $439.10, up from $438.60.
Silver bullion prices rose on the London market, where the metal was trading at a late bid of $6.98 an ounce, compared to $6.77 late Wednesday. On New York’s Comex, silver bullion for current delivery was bid at $6.935, up from $6.819.
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