Dollar Slips Against Most Currencies in Europe Trade

The U.S. dollar fell against major currencies except the West German mark and Swiss franc in European trading today. Gold prices rose.

There was a short-lived rally early in the day after news that U.S. durable goods buying surged 6.4% in December, when the expectation had been for a rise of 0.3%.

But the dollar slipped again when details showed some of the gains were from large defense and transportation orders.

No interventions by central banks selling dollars were reported but the threat of dollar sales was enough to restrain the market, dealers said.

In Tokyo, the dollar fell to 127.52 Japanese yen from 127.65 late Wednesday. In London late today the dollar traded lower at 128.15 yen. The British pound rose to $1.7730 from $1.7710 late Tuesday.

Other late rates for the dollar today compared with Wednesday’s late rates: 1.8440 West German marks, up from 1.8435; 1.5671 Swiss francs, up from 1.5670; 6.2705 French francs, down from 6.2715; 2.0815 Dutch guilders, down from 2.0820; 1,350.25 Italian lire, down from 1,350.50; and 1.1816 Canadian dollars, down from 1.1840.

Gold Rises

Gold bullion prices rose by about $1.50 a troy ounce in Europe.

The closing price in London and Zurich was a bid $405.75 a troy ounce, up from $404.25 in both cities Wednesday. Earlier in Hong Kong, gold closed at $407.70 bid, up from $406.57.

Silver bullion traded late in London at $6.19 bid a troy ounce, up from $6.12.