CURRENCY : Dollar Holds to Narrow Range; Gold Advances

The dollar drifted fractionally lower Wednesday against most major currencies after giving a mixed performance overseas.

Gold prices were mostly up. Republic National Bank of New York’s late bid was $433.25 an ounce, up $1.75 from late Tuesday.

Ron Sapiro, head trader for Continental Illinois National Bank & Trust Co., said there was little fundamental news affecting trading.

“I think we’re getting the summer doldrums right now. There’s a lot of activity but in a small range,” he said.

Overseas, dealers remained fearful of possible central bank intervention.

“The central banks are sitting at the top, and even light intervention could drop the market quickly,” said Steve Barrow, corporate trader with Chemical Bank in London.

In Tokyo, where trading ends before Europe’s business day begins, the dollar rose 0.45 Japanese yen to a closing 132.85 yen. It was quoted at the same rate in London. Later, in New York, the dollar stood at 132.79 yen, down from 132.98 yen late Tuesday.

The British pound fell to $1.7090 from $1.7093 late Tuesday in London, but rose to $1.71225 from $1.70675 in New York.

Other late dollar rates in New York, compared to late rates Tuesday, included: 1.87465 West German marks, down from 1.87725; 1.56215 Swiss francs, down from 1.5628; 6.3215 French francs, up from 6.3195; 1.20355 Canadian dollars, down from 1.20595, and 1,382.75 Italian lire, down from 1,383.25.

Late dollar rates in Europe, compared to late Tuesday, included: 1.8755 West German marks, down from 1.8760; 1.5635 Swiss francs, unchanged; 6.3235 French francs, down from 6.3265; 2.1150 Dutch guilders, up from 2.1140; 1.2020 Canadian dollars, down from 1.2068, and 1,382.00 Italian lire, up from 1,380.75.

On the Commodity Exchange in New York, gold bullion for current delivery closed at $433.30 an ounce, up $1.80 from late Tuesday.

Gold fell in London to a late bid of $432.25, down from $433, but rose in Zurich, Switzerland, to a bid of $434 from $433. Earlier, in Hong Kong, gold fell $2.70 to $433.67.

Silver prices were higher. Silver for August delivery finished at $6.835 an ounce on New York’s Comex, up from $6.792 on Tuesday.

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