CURRENCY : Dollar Ends Day Higher After Seesaw Session; Gold Prices Fall
The dollar finished higher against most major currencies Tuesday after a choppy day of trading in the foreign exchange markets.
Gold prices fell in New York. In late trading, Republic National Bank of New York said gold was bid at $410.70 an ounce, down from $411.90 late Monday.
The U.S. currency began the day on the upswing in Asia, buoyed by comments in Tokyo from Bank of France Governor Jacques de Larosiere, who reiterated support for central bank intervention to achieve exchange rate stability. The dollar then headed lower in Europe before turning up again in domestic trading.
Analysts said that despite the appearance of volatility, the dollar was stuck in the same narrow range it has been trading in since spring, between 1.80 and 1.90 West German marks.
“All we’re seeing is the low end of the same range,” said James Pugh of Bear, Stearns & Co. “It will continue to do that until the election.”
Those following the dollar generally agreed that any drastic moves up or down were unlikely before the presidential election next month. Smaller moves within the established trading range are possible, they said.
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