Newspaper article THE JOURNAL RECORD

Dollar Up; Spurred by Word of Iranian Cutback Proposal

Newspaper article THE JOURNAL RECORD

Dollar Up; Spurred by Word of Iranian Cutback Proposal

Article excerpt

NEW YORK (AP) - The dollar rose Monday against most major currencies on word of a proposal by Iran to cut OPEC's oil production. Gold prices were mixed.

Higher oil prices could stimulate inflation in the United States, pushing up U.S. interest rates and making dollar-denominated investments more attractive, some traders said.

The dollar was also boosted by central-bank intervention and by expectations of strong foreign purchases of Treasury securities at the government's quarterly refunding auction this week, traders said.

Chad Dickson, a vice president with Salomon Brothers Inc. in New York, said the smallness of the dollar's rise indicated that most traders were skeptical that OPEC would succeed in cutting production and boosting prices.

Iranian Oil Minister Gholamreza Aghazadeh told a news conference in Geneva he had received positive replies from the majority of the 13 members of the Organization of Petroleum Exporting Countries.He did not identify them, nor say whether the holdouts included Saudi Arabia, OPEC's largest producer.

The dollar had been down earlier in the day in Europe and Japan. Foreign exchange dealers in Europe said traders were concerned about slow economic growth in the United States as well as the deficits in its budget and trade balances.

The dollar fell to its lowest level in Japan since the late 1940s for the third straight session, closing in Tokyo at 154.00 yen, down from Friday's 154.10. Later in London, the dollar was quoted even lower at 153.55 yen.

At the end of the day in New York, the dollar rose to 154.35 yen from 154.03 yen late Friday.

The dollar strengthened in London against the British pound. One pound cost $1.4675, cheaper than Friday's late $1. …

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