CURRENCY : Dollar Mixed; Traders Get Set to Close Year’s Books

The dollar rose against some foreign currencies and fell against others Monday in light trading as major traders prepared to close their books at the end of the year.

Corporate customers and banks that deal in currencies are unlikely to take big positions for or against the dollar in the last two weeks of the year for fear of guessing wrong and spoiling their year-end financial statements, said Frank Conte, vice president for foreign exchange in the New York office of Barclays Bank PLC.

“Why risk it?” Conte asked.

Dealers said there was still some talk in the market that the Federal Reserve would raise its discount rate, although few believed that a Fed move will occur before the beginning of the new year. The discount rate is what the central bank charges commercial banks for loans.

In Tokyo, where trading ends before Europe’s business day begins, the dollar fell 0.08 Japanese yen to a closing 124.02 yen. Later, in London, it was quoted higher at 124.05 yen. In New York, it fell to 124.08 yen from 124.14 yen.

Gold Prices Rise

The dollar fell against the British pound in London and New York. In London, it cost $1.8230 to buy one pound, more expensive than $1.8150 late Friday. In New York, the pound rose to $1.8209 from $1.8193.

Other late dollar rates in New York, compared to late Friday’s prices, included: 1.7645 West German marks, up from 1.7584; 1.4891 Swiss francs, up from 1.4820; 1.1998 Canadian dollars, down from 1.2305; 6.0270 French francs, up from 6.0090, and 1,300.75 Italian lire, up from 1,296.50.