CURRENCY : Uncertainties Bring Mixed Dollar Prices
The dollar finished mixed against major foreign currencies Thursday in listless trading, as the market awaited developments from a meeting of finance ministers from major industrialized countries and the publication of new U.S. job figures.
Gold prices slipped. Republic National Bank of New York quoted a bid price for gold of $391.10 an ounce as of 4 p.m. EST, down from $391.50 late Tuesday.
The U.S. currency traded in narrow ranges through most of the day, dealers said. It fell in early trading in the Far East, then edged higher in Europe on news that the West German central bank didn’t alter its monetary policy at its council meeting. But the dollar later fell back after failing to break through key technical points, traders said.
Many market participants retreated to the sidelines before the so-called Group of Seven meeting of industrialized nations that began late Thursday in Washington. The G-7 countries are the United States, West Germany, Japan, France, Britain, Italy and Canada.
Currency traders also are awaiting the U.S. unemployment report for January to be released today.
“There’s a fair amount of uncertainty,” said Peter Borish, a currency analyst at Tudor Investment Co. “The best way to trade when you don’t know what’s going on is to stay on the sidelines.”
In Tokyo, where the business day ends before Europe’s begins, the dollar fell to 129.75 Japanese yen, down 0.65 yen. Later, in London, the dollar traded at 129.48 yen. By the end of trading in New York, the dollar had declined to 129.57 yen from 130.33 yen late Wednesday.
In London, the dollar weakened against the British pound. One pound cost $1.7515 Thursday, slightly higher for buyers than late Wednesday’s $1.7500. In late New York trading, the pound was quoted at $1.7450, down slightly from $1.7470 late Wednesday.
Other late dollar rates in New York, compared to late Wednesday’s rates, included: 1.8775 West German marks, up from 1.8753; 1.5945 Swiss francs, down from 1.5960; 6.3880 French francs, up from 6.3845; 1,371.25 Italian lire, up from 1,370.50, and 1.1893 Canadian dollars, down from 1.1900.
