Newspaper article THE JOURNAL RECORD

Dollar Up after See-Sawing; Gold Bullion Jumps $1.25

Newspaper article THE JOURNAL RECORD

Dollar Up after See-Sawing; Gold Bullion Jumps $1.25

Article excerpt

NEW YORK (AP) - The dollar ended the day higher on Wednesday, after seesawing on reports of sluggish economic activity and officials' statements. It movements were exaggerated by thin trading.

Gold prices rose. Bullion was quoted at $346 an ounce at Republic National Bank at 4 p.m. EDT, up $1.25 from Tuesday's late bid.

The dollar moved up, down, and up.

It generally gained ground through most of the European trading day. Them two unexpectedly weak U.S. economic indicators pushed the dollar off its midday highs, and the currency ended the session mixed.

According to traders in Frankfurt, West Germany, the more damaging of the two indicators was a report that the U.S. merchandise trade deficit widened to $14.52 billion in March, from a revised February deficit of $11.37 billion.

In addition, the government reported that new factory orders in the United States fell 2.3 percent in March, compared with a revised decline of 1.3 percent in February.

Analysts said investors were reluctant to commit themselves ahead of the weekend in view of the scheduled closure of many European markets on Thursday for the May Day holiday.

The dollar was further pressured by statements by U.S. Treasury Secretary James A. Baker III that the dollar's more than 30 percent decline in exchange value over the past 14 months had been orderly and moderate.

Baker declined to say whether the administration of President Reagan sought a further decline for the dollar.

""The United States has no target for the dollar,'' Baker said in a news conference that was broadcast by satellite from Washington to Brussels and the capitals of Britain, France, West Germany, Italy, Japan and Canada.

Markets in the Netherlands were closed Wednesday in a national celebration of the Dutch queen's birthday.

Late in the trading day, the dollar rose on news that the Senate Banking Committee issued a report stating that a further decline in the dollar was undesireable because it might rekindle inflation,said William Orsini, senior commercial trader on the foreign exchange desk at the Bank of Montreal here. …

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