Currency : Dollar Higher in European Trading

The dollar rose Monday in European trading that was greatly reduced by the Memorial Day holiday in the United States and by a bank holiday in Britain. Gold prices fell.

In Frankfurt, traders said they had not seen any signs of central bank intervention in the open market during the European day and, citing the absence of the U.S. Federal Reserve Board, said they didn’t expect any.

Dealers said demand for dollars remained strong because of the attraction of relatively high American interest rates and the lure of U.S. investment.

In Tokyo, where trading ends before Europe’s business day begins, the dollar rose 2.48 yen to close at 142.88 yen from Friday’s 140.40. Later, in Europe, it was quoted at 142.53 yen.

In Europe, the dollar gained against the British pound. It cost 1.5710 dollars to buy one pound, cheaper than 1.5922 dollars late Friday in London.

Other late dollar rates in Europe, compared to late Friday: 2.0101 West German marks, up from 1.9675; 1.7550 Swiss francs, up from 1.7155; 6.8025 French francs, up from 6.6625; 2.2625 Dutch guilders, up from 2.2150; 1,454.00 Italian lire, up from 1,421.75, and 1.2047 Canadian dollars, up from 1.2035.

Bullion markets in London were closed for the bank holiday, but in Zurich, gold was quoted at $363.10 in late trading, compared to 364.50 late Friday.

Earlier, in Hong Kong, gold fell 97 cents to close at a bid of $363.16.