CURRENCY : Dollar Moves Higher; Gold Prices Rise
The dollar advanced against most major currencies except the British pound and Canadian dollar in choppy trading Monday.
Gold prices rose in domestic trading after a mixed performance overseas. Republic National Bank of New York quoted a late bid of $387.30 an ounce, $1 higher than Friday’s late bid.
Zlatko Glamuzina, chief currency dealer at the New York office of Banco di Sicilia, said the dollar benefited from improvements in the stock and bond markets and rising oil prices.
Snow in New York on Monday kept some dealers away and persuaded others to end their business days early, which made for a thin market, Glamuzina said. In a thin market, individual trades can have an exaggerated impact on prices.
European dealers said the market lacked much incentive to do anything other than explore the dollar’s recent ranges. They said the market may get direction from Friday’s Labor Department report on February unemployment.
In London, the dollar gained against the British pound. It cost $1.7210 to buy one pound, cheaper than $1.7240 late Friday. Later in New York, however, sterling strengthened a bit and a pound cost $1.72335, up from $1.72025 Friday.
In Tokyo, where trading ends before Europe’s business day begins, the dollar dropped 0.49 Japanese yen to a closing 127.63 yen. Later, in London, it was quoted at 128.80 yen and at 129.15 late in New York’s day, up from 127.815 on Friday.
Other late dollar rates in New York, compared to Friday’s levels, included: 1.85275 West German marks, up from 1.8437; 1.58575 Swiss francs, up from 1.57515; 1.19235 Canadian dollars, down from 1.19505; 6.29725 French francs, up from 6.2645, and, 1,362.125 Italian lire, up from 1,358.00.
Late dollar rates in Europe, compared to late Friday’s rates, included: 1.8531 West German marks, up from 1.8415; 1.5830 Swiss francs, up from 1.5765; 6.2955 French francs, up from 6.2600; 2.0855 Dutch guilders, up from 2.0770; 1,359.25 Italian lire, up from 1,358.75, and 1.1928 Canadian dollars, down from 1.1935.
On the Commodity Exchange in New York, gold bullion for current delivery closed at $388 an ounce, up from Friday’s $386.60.
On New York’s Comex, silver bullion for current delivery settled at $5.809, compared to Friday’s settlement of $5.801.
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