CURRENCY : Dollar Rises in Quiet Session; Gold Is Mixed

The dollar rebounded against most major currencies in quiet, nervous trading Wednesday after retreating overseas amid reports of some central bank intervention.

Gold prices were mixed. Republic National Bank of New York quoted a late bid of $444.50 an ounce, down $1.25 from Tuesday.

Currency dealers said the dollar started out on a down note in domestic trading after reports that the West German central bank intervened twice to sell dollars in an effort to drive the currency lower.

However, they said reports of an anti-American demonstration by Moslem pilgrims in Mecca, Saudi Arabia, helped boost the dollar later in the trading session.

“I think there’s a lot of uncertainty at this point as to where we go from here,” said Earl I. Johnson, a Harris Trust & Co. currency trader. “With the central bank intervention we’re losing some of the bullish sentiment toward the dollar.”

Silver Gains

Zlatko Glamuzina, chief dealer at Banco di Sicilia’s New York office, said the dollar would have traded higher had it not been for fears of central banks intervening further to stem the currency’s recent rise.

He said the Mideast demonstrations reported by Tehran Radio showed that “the dollar is still a safe haven currency.”

In Tokyo, where trading ends before Europe’s business day begins, the dollar fell 0.80 yen to a closing 133.05 yen. It was quoted at 133.25 yen in London. Later, in New York, the dollar stood at 133.775 yen, up from 133.155.

In London, the British pound rose to $1.7085 from $1.6937 late Tuesday. The pound rose to $1.7054 in New York from $1.7038.

Other late dollar rates in New York, compared to late Tuesday’s prices, included: 1.8555 West German marks, up from 1.8535; 1.5392 Swiss francs, up from 1.5374; 1.19835 Canadian dollars, up from 1.19735; 6.2535 French francs, up from 6.2515, and 1,373.00 Italian lire, down from 1,374.00.

Late dollar rates in Europe, compared to Tuesday: 1.8520 West German marks, down from 1.8640; 1.5360 Swiss francs, down from 1.5475; 6.2455 French francs, down from 6.2845; 2.0910 Dutch guilders, down from 2.1010; 1,371.50 Italian lire, down from 1,383.60, and 1.1959 Canadian dollars, down from 1.2011.

On the Commodity Exchange in New York, gold bullion for current delivery fell to $444.80 an ounce from $446.50 late Tuesday.

Gold was quoted at $444.80 in London, compared to late Tuesday’s bid of $437.00. In Zurich, the bid was $445, up from $436.50 late Tuesday.

Earlier, in Hong Kong, gold rose $7.86 an ounce to $446.84.

The upward movement in gold abroad was attributed to inflation fears and a miners strike in Peru.

On the New York Comex, silver bullion for current delivery rose to $7.827 from $7.727 late Tuesday. Silver was quoted in London at a bid of $7.75 Wednesday, up from Tuesday’s $7.13.

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