CURRENCY : Dollar Boosted by Japanese Intervention
The dollar rose Monday against most major currencies after reports of intervention by the Bank of Japan lifted it from its lows of the day.
Gold prices rose. In late trading, Republic National Bank of New York said gold was bid at $411.90 an ounce, up from $409 late Friday.
The dollar opened lower in Tokyo, but was forced upward by the Japanese central bank’s dollar purchases, traders said.
After the upward spike in Tokyo, the dollar drifted in uncertain trading in Europe and the United States, ending the day below its highs, said Bob Morrissey, senior trader at the Bank of Boston.
“The market’s still looking for a lower dollar,” Morrissey said.
Speculators were reluctant to try pushing the dollar lower because larger short positions would make them vulnerable to big losses in case the dollar shot up, dealers in Europe said.
In Tokyo, where trading ends as Europe’s business day begins, the dollar closed at 127.20 Japanese yen, up from its opening levels but down 1.05 yen from Friday. Later, in London, it was quoted at 127.35 yen. At the end of the trading day in New York, the dollar rose to 127.07 yen from 126.70 yen late Friday.
The British pound fell against the dollar to $1.7530 from $1.7550 late Friday. Later in New York, the pound fell to $1.7464 from $1.7598.
Other late dollar rates in New York, compared to late Friday’s rates, included: 1.8088 West German marks, up from 1.8040; 1.5275 Swiss francs, up from 1.5243; 1.2038 Canadian dollars, down from 1.2048; 6.1710 French francs, down from 6.1765, and 1,346.50 Italian lire, up from 1,344.75.
Other late dollar rates in Europe, compared to late Friday, included: 1.8120 West German marks, down from 1.8128; 1.5295 Swiss francs, down from 1.5305; 6.1790 French francs, down from 6.1945; 2.0390 Dutch guilders, down from 2.0470; 1,348.50 Italian lire, down from 1,352.50, and 1.2047 Canadian dollars, down from 1.2048.
In Hong Kong, gold rose 32 cents an to $414.06. In London, gold traded at $412.25, higher than late Friday’s $409.10. In Zurich, Switzerland, the late bid was $412.30, up from $408.60.
On the Commodity Exchange in New York, gold bullion for current delivery closed at $412.20, up from $409.10.
Silver was quoted in London late Monday at a bid of $6.43 an ounce, up from Friday’s $6.33. On New York’s Comex, silver bullion for current delivery rose to $6.405 from $6.365.
