CURRENCY : Dollar Manages a Late Rebound in N.Y.

The dollar finished firmer in domestic dealings Thursday, bolstered by a late afternoon rally.

Gold prices were little changed after rising overseas. Republic National Bank of New York said gold bullion was bid at $420.85 an ounce as of 4 p.m. EST, compared to $420.90 late Wednesday.

Trading was relatively quiet as the Japanese markets were closed for a national holiday.

The failure of several rounds of interventions by the Bank of Japan and the Federal Reserve to support the dollar earlier in the week resulted in selling pressure overseas. But while the dollar lost ground in European trading, the currency rallied on technical factors when dealings shifted to the United States.

Next Tuesday’s presidential election remains a primary focus for the currency market. While the sentiment surrounding the U.S. currency remains bearish, “there’s a feeling that we’d like to stabilize (the dollar) at these levels until the election,” said Earl Johnson, vice president at Harris Trust & Savings Bank in Chicago.

Dollar Dips in London

Despite the progress Democratic candidate Michael S. Dukakis seems to have made to cut into Vice President George Bush’s lead, neither candidate is perceived as having a viable solution to the trade and budget deficit problems, which rank as primary concerns for currency traders, Johnson said.

On a more fundamental basis, some traders believe that the flurry of new bonds the Treasury is preparing to issue will give the dollar a boost. George DeLuna, a vice president at Irving Trust Co., noted that foreign purchasers will need dollars in order to buy the bonds.

In Tokyo, banks and financial markets were closed for a national holiday. In London, the dollar was trading at 124.25 Japanese yen, down from 124.68 yen in Tokyo at Wednesday’s close. In New York, the dollar rose to 124.68 yen from 124.40 yen on Wednesday.

In London, the dollar fell against the British pound. It cost $1.7805 to buy one pound, more expensive for buyers than $1.7740 late Wednesday. In New York, however, it cost $1.7775 to buy one pound, cheaper than Wednesday’s $1.7805.

Other late dollar rates in New York, compared to Wednesday’s rates, included: 1.7778 West German marks, up from 1.7750; 1.4906 Swiss francs, up from 1.4898; 6.0727 French francs, up from 6.0470; 1,322.25 Italian lire, up from 1,319.88, and 1.2212 Canadian dollars, down from 1.2261.

Silver Prices Mixed

Gold prices were mostly higher overseas and little changed at home. On the New York Commodity Exchange, gold finished at $421.50 an ounce, down slightly from $421.80 late Wednesday.