Newspaper article THE JOURNAL RECORD

Dollar Performance Mixed; Gold Price Closes Down $2

Newspaper article THE JOURNAL RECORD

Dollar Performance Mixed; Gold Price Closes Down $2

Article excerpt

NEW YORK (AP) - The dollar turned in a mixed performance in trading at home and abroad Monday, steadying after its recent climb.

The price of gold fell. At the Republic National Bank of New York, gold bullion was quoted at $341.50 a troy ounce as of 4 p.m. EDT, $2 lower than Friday's late bid.

James T. McGroarty, a vice president with Discount Corp. of New York, said the dollar weakened as trading got under way in the United States due to the lingering impact of earlier unfounded rumors on overseas markets that President Reagan had suffered a heart attack or been shot.

The rumors were quickly denied by White House officials in Washington but foreign exchange dealers in Europe said the markets there did not fully recover and dollar-selling continued.

In later U.S. trading, the dollar gained strength amid fresh expectations of a rebound in U.S. economic growth and rising interest rates. Higher U.S. rates could increase the demand for dollar-denominated investments.

As trading wound down in New York, the dollar was higher against the Japanese yen, partly due to the uncertainty surrounding the upcoming elections in Japan. The dollar rose to 175.05 Japanese yen from 174.75 yen on Friday.

The dollar also gained against its Canadian counterpart. A rift between the United States and Canada over wood products trade has hurt the Canadian dollar, dealers said.

Christiane Mandell, assistant vice president and economist at the New York office of Barclays Bank PLC, said the dollar's upward movements were restrained by the perception that the U.S. governmentwould prefer a lower dollar in order to help make U.S. exports more competitive on world markets.

She said dealers were wary ahead of remarks by U.S. Treasury Secretary James A. Baker III to an international monetary conference on Tuesday. …

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