Newspaper article THE JOURNAL RECORD

Dollar Little Changed, Pound Declines, Gold Prices Mixed

Newspaper article THE JOURNAL RECORD

Dollar Little Changed, Pound Declines, Gold Prices Mixed

Article excerpt

NEW YORK (AP) - The dollar gained strongly against the particularly weak British pound Thursday but was little changed against other foreign currencies as dealers awaited the outcome of the weekend meeting of the Group of Five.

Gold prices were mixed. Bullion was quoted at $443.50 a troy ounce at 4 p.m EDT by Republic National Bank in New York, up $2.50 from Wednesday's late bid.

The finance ministers of the United States, Japan, West Germany, Great Britian and France were to begin talks Friday in Washington, a year after they agreed on concerted action to bring down the value of the then high-riding dollar.

""I think that's on top of everybody's mind,'' said Steve Stekly, an assistant vice president for the Bank of Boston. ""I think everybody is just waiting to see whether there is any statement out of the ordinary coming out of this weekend.''

A trader with Barclays Bank PLC in New York, who declined to be identified, said: ""The (dollar's) change was in a narrow range as we expected. That was as expected riding up to the G-5 meeting. Weexpected today to be a quiet day and it was indeed.''

The decision of the Bundesbank, West Germany's central bank, to leave its interest rates unaltered reduced tension on foreign exchange markets but had little effect on the dollar.

The day's action centered around the pound, Stekly said.

In London, the pound's latest slump renewed fears of an imminent hike in British interest rates. Despite reports by dealers of steady intervention by the Bank of England to prop up sterling, the pound has lost seven pence against the dollar in the past five weeks.

The pound's decline was attributed to falling oil prices - Britain is an oil exporter - and poor balance-of-trade figures published Wednesday. …

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