Newspaper article THE JOURNAL RECORD

Dollar, Gold Mixed

Newspaper article THE JOURNAL RECORD

Dollar, Gold Mixed

Article excerpt

NEW YORK (AP) - After advancing broadly for three straight sessions, the dollar turned in a mixed performance Thursday as traders remained preoccupied with the prospect of further central bank intervention against the dollar.

The dollar was helped late in the day by a Federal Reserve Board report of an unexpectedly large $5.3 billion rise in the basic U.S. money supply in the final week of September.

Gold bullion prices also were mixed. Republic National Bank in New York quoted gold as of 4 p.m. EDT at $325.50 a troy ounce, up 75 cents from Wednesday's late bid.

Currency dealers said central banks are using intervention, or sales of dollars, as a tool to keep a ceiling on the dollar's upward movements.

In the absence of any dollar-dumping by the central banks, the dollar would strengthen markedly, partly reflecting the keen interest of international corporations to buy dollars at the lowest exchange rates in about 18 months, the dealers said.

""I think you would see the dollar moving up quite sharply without intervention,'' said David Wilson, a foreign exchange trader at Bank of Montreal in New York.

Similarly, Albert Soria, a vice president with the Swiss Bank Corp. in New York, said: ""There is a basic demand for dollars right now ... the dollar is on an upward trend.''

Currency traders have been watching closely for signs of the central banks in the market since late last month when the finance leaders of the United States, Britain, France, Japan and West Germanyagreed to cooperate to lower the dollar's value in an effort to improve world trade.

Even though Tokyo markets were closed for a national holiday, there were unconfirmed reports that the Bank of Japan sold dollars on exchanges elsewhere in Asia. …

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