CURRENCY : Dollar Climbs Despite Intervention Jitters

The dollar advanced slightly Thursday, kept in check by fears that central banks would enter the foreign exchange market and send the U.S. currency lower.

Gold prices were mixed, rising overseas but falling in New York trading. Republic National Bank of New York quoted a late bid of $396.50 for an ounce, down $1.25 from late Wednesday.

Ted Wolicki, a trader with Continental Illinois National Bank & Trust Co. in Chicago, said the dollar rose amid rumors of a possible reshuffling of Soviet leaders.

Extraordinary meetings are scheduled in Moscow this week for the Communist Party Central Committee and the Soviet parliament, the Supreme Soviet. A high-level source said Thursday that a shake-up was in the offing.

However, Wolicki said, the rumors were “just an excuse for the dollar to take the market a little higher.”

Traders were buying gingerly, because “it looks like the central banks will probably step in if the dollar starts going up again,” Wolicki said.

On Monday, the central banks of several nations, including the U.S. Federal Reserve, were reported to have sold dollars to put a lid on the currency’s advance. The banks’ move followed a reaffirmation by major industrial nations of their commitment to keep currency prices stable.

Demand Remains

Wolicki said the dollar was “basically trendless, going sideways for a while,” but could start drifting lower.

In overseas trading, the dollar was also restrained by fears of central bank intervention. However, one dealer said, “the real demand for dollars is still out there.”

In Tokyo, where trading ends before Europe’s business day begins, the dollar rose 0.15 Japanese yen to a closing 134.35 yen. Later in London, it was quoted at 134.23 yen, and in New York the dollar rose to 134.37 yen from late Wednesday’s 134.02 yen.

The dollar gained on the British pound in London. It cost $1.6825 to buy one pound, cheaper than $1.6840 late Wednesday. The dollar was also a winner against the pound in New York, where sterling was quoted at $1.6810, down from late Wednesday’s price of $1.6905.

Other late dollar rates in New York, compared to late Wednesday’s rates, included: 1.8826 West German marks, up from 1.8767; 1.5942 Swiss francs, up from 1.5897; 6.4065 French francs, up from 6.3877; 1,402.25 Italian lire, up from 1,398.87, and 1.2182 Canadian dollars, down from 1.2212.

Other late dollar rates in Europe, compared to late Wednesday’s quotes, included: 1.8823 West German marks, up from 1.8785; 1.5930 Swiss francs, up from 1.5920; 6.4055 French francs, up from 6.3980; 2.1210 Dutch guilders, up from 2.1182; 1,402.60 Italian lire, up from 1,401.00, and 1.2175 Canadian dollars, down from 1.2215.

Silver Futures Climb

Gold slipped to $396.80 an ounce on the Commodity Exchange in New York from Wednesday’s $398.20.

Silver prices were higher. On the Comex in New York, silver rose to $6.173 an ounce from $6.166 late Wednesday. In London, silver was quoted at $6.20, up 5 cents.