CURRENCY : Banks’ Buying Does Little to Impede Slide by Dollar
The dollar continued to fall Tuesday against all major currencies in cautious trading despite reports of some central bank intervention.
Gold prices rebounded. Republic National Bank’s late quote was $418 an ounce, up $2.50.
Currency dealers reported that the Federal Reserve bought modest amounts of dollars with Japanese yen throughout the session, but they said the intervention had only limited impact on the bearish market.
“There’s a preponderance of (dollar) selling,” said George DeLuna, a vice president and trader at Irving Trust Co.
Traders have become increasingly worried about the lingering trade and budget deficits and their ultimate effect on the economy.
In Tokyo, traders said the Japanese central bank made occasional dollar purchases Tuesday, but the dollar fell 0.74 yen to a closing 121.78 yen. The dollar was quoted at 121.75 yen in London, and fell in New York to 121.315 yen from 122.025 yen late Monday.
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