Newspaper article THE JOURNAL RECORD

Dollar Drifts Lower, Gold Up Overseas, Down in U.S

Newspaper article THE JOURNAL RECORD

Dollar Drifts Lower, Gold Up Overseas, Down in U.S

Article excerpt

NEW YORK (AP) - The dollar drifted lower Monday against other major currencies in light trading on the eve of U.S. observance of Veterans' Day.

Gold prices were mixed, rising in Asia and Europe but then falling in U.S. trading. Republic National Bank in New York quoted an after-hours bid for gold at $405.75 a troy ounce as of 4 p.m. EST, down $2.50 from Friday's late bid.

Currency dealers said traders were reluctant to make overnight commitments to either buy or sell the dollar because many of them would be taking the day off on Tuesday as the United States observes Veterans' Day.

Robert Ryan, vice president for foreign exchange at Irving Trust Co. in New York, said the dollar was driven lower by concerns that Secretary of State George Shultz may resign and by additional reflections on last week's report on October unemployment.

Ryan said rumors that Shultz was considering resigning because of the Reagan administration's reported dealings with Iran to secure the release of American hostages in Lebanon made some traders nervous.

In addition, he said closer inspections of the October unemployment figures were convincing many traders that the economy may not be as strong as a first reading had suggested.

The figures said payroll employment rose at a faster rate than had been anticipated. But Ryan said traders were finding that ``a lot of strength in those numbers was people in part-time employment'' rather than fulltime jobs.

``That would suggest a weakening economy rather than one maintaining its current pace,'' he said. A weaker economy would make the dollar less attractive to foreign investors. …

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