Newspaper article THE JOURNAL RECORD

Dollar Up, Gold Mostly Higher; South African Rand Declines

Newspaper article THE JOURNAL RECORD

Dollar Up, Gold Mostly Higher; South African Rand Declines

Article excerpt

NEW YORK (AP) - The dollar turned broadly higher Tuesday but finished below its highs of the day after some interest rates fell in the United States.

Currency dealers said traders focused most of their attention on the South African rand, which fell to a new low against the dollar because of concern over possible economic sanctions in protest ofthe government's apartheid policy.

The price of gold was mostly higher. Republic National Bank of New York said gold bullion was bid at $336.75 a troy ounce as of 4 p.m. EDT, up $1.10 from the late bid Monday.

Trading resumed in Britain, Singapore and Hong Kong, where financial markets had been closed for a three-day holiday weekend.

Typical of the dollar's day was its performance against the Japanese yen.

In Tokyo, the dollar rose to 237.02 yen from 236.40 yen Monday. Later in London, the dollar was quoted at 237.10 yen, and by the end of the trading day in the United States, the dollar had settled at 237.025 yen, against 236.75 yen late Monday.

European currency dealers said some traders bought dollars to cover previous short positions, or earlier sales of borrowed dollars that were motivated by hopes of a decline in the currency.

When the dollar stabilized, traders began buying dollars in the open market to either lock in profits from the short sales or limit losses.

But the dollar failed to hold on to all of its gains, giving ground later in the day as bond market interest rates dipped in the United States. Falling U.S. interest rates make returns less attractive on dollar-denominated investments.

Howard Kurz, chief currency dealer at Bank of America's trading center in New York, said most talk among traders Monday centered on the rand, which fell to a new low of 35.75 U.S. cents in Johannesburg, plunging from its opening level of 38. …

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