CURRENCY : Dollar’s Climb Stalled by Central Banks; Gold Declines

The dollar rose Monday but was knocked off its highs of the day by the intervention of the central banks of the United States, West Germany, Switzerland and Canada. Gold prices continued to slide.

The president of West Germany’s central bank, Karl Otto Poehl, helped put a lid on the dollar’s rise by saying that his bank favors a strong West German mark and that there is no disagreement among the United States, West Germany and Japan over dollar policy.

The dollar rose last week in confused trading after Helmut Schlesinger, Poehl’s vice president, issued seemingly contradictory statements that appeared to leave room for the U.S. currency to climb.

The dollar finished higher Monday than its Friday close against all major currencies except the Japanese yen.

The yen rose in concert with the Japanese stock market, which posted its biggest gain in a year Monday amid a wave of pent-up buying by small investors who had stayed out of the market during the long illness of Emperor Hirohito. The emperor died Saturday.

The dollar is strong because high U.S. interest rates make dollar-denominated investments attractive to American and foreign investors.

Traders said President Reagan’s release of his final budget proposal had no impact on the currency market.

“The market’s waiting to see what Mr. Bush is going to do, not what Mr. Reagan’s going to do,” said Rick Lloyd, foreign exchange trading manager at Security Pacific National Bank in Los Angeles.

The dollar got as high as nearly 1.833 West German marks by the opening of New York trading, said Angelo Mazzeo, a trader at European American Bank in New York. Dollar sales and mark purchases by the four central banks knocked it down after that.

In London, the British pound fell to $1.7650 from $1.7797 late Friday. In New York, the pound fell to $1.7733 from $1.7780 Friday.

In Tokyo, the dollar rose to a closing 126.08 yen from Friday’s 125.97 yen. Later, in London, it rose further to 126.50 yen. In New York, the dollar fell to 125.98 yen from 126.73 late Friday.

Other late dollar rates in New York, compared to late Friday’s rates, included: 1.8203 West German marks, up from 1.8170; 1.5500 Swiss francs, up from 1.5483; 1.1994 Canadian dollars, up from 1.1973; and 6.2420 French francs, up from 6.1985, and 1,335 Italian lire, up from 1,331 late Friday.

Other late dollar rates in Europe, compared to late Friday, included: 1.8245 West German marks, up from 1.8140; 1.5555 Swiss francs, up from 1.5475; 6.2300 French francs, up from 6.1830; 2.0575 Dutch guilders, up from 2.0480; 1,339.75 Italian lire, up from 1,330.50; and 1.1955 Canadian dollars, up from 1.1912.

Gold continued a monthlong decline that has knocked nearly $20 an ounce off its price since early December.

Gold bullion fell $1.97 an ounce in Hong Kong to close at $407.18, dropped $3 to a late bid of $402.75 in London and slipped $2.75 to a late bid of $402.75 in Zurich, Switzerland.

On the Commodity Exchange in New York, gold bullion for current delivery fell to $404.90 from $406.30 late Friday. Republic National Bank of New York reported a late bid of $404.50, down from $406.25.

Silver bullion fell in London to a bid price of $5.94, down from $5.97 bid late Friday. On New York’s Comex, silver bullion for current delivery fell to $5.963 from $5.988 Friday.

Tables, Page 8