Newspaper article THE JOURNAL RECORD

Dollar Slides to Lows despite Intervention; Gold Prices Up

Newspaper article THE JOURNAL RECORD

Dollar Slides to Lows despite Intervention; Gold Prices Up

Article excerpt

NEW YORK (AP) - The dollar slid on world currency markets Tuesday, hitting four- to seven-year lows against five other major currencies. The U.S. currency's decline came despite efforts to support it by the Bank of Japan, dealers said.

Gold prices were higher. Republic National Bank in New York quoted gold at $410.55 a troy ounce at 4 p.m. EST, up $2.05 an ounce from $408.50 late Monday.

Traders said the market defied an intervention by the Federal Reserve Bank, the U.S. central bank, acting on behalf of the Bank of Japan, to support the dollar by purchasing the U.S. currency and selling yen against it. The Japanese central bank also was reported to have intervened in the Tokyo foreign exchange market earlier Tuesday.

Despite the interventions, the dollar slumped to a seven-year low against the Swiss franc, six-year lows against the West German mark and Dutch guilder, and 4 1@2-year lows against the Italian lira and French franc.

The outlook for the dollar remains dampened by concern over the bloated U.S. trade deficit and the prospect of sluggish economic growth for the country this year, dealers noted.

``The intervention has really not stopped the market; it's like going against the wave,'' said Didier Javice, a corporate trader for Goldman, Sachs & Co. in New York. ``The psychology of the market is very bearish (regarding the dollar).''

Bill Shilstone, a trader in Union Bank of Switzerland's New York office, reported that market participants sold dollars ``very aggressively'' in Tuesday's dealings. ``The sellers were out in full force,'' he said. ``The trend (for the dollar) is still down.''

In Tokyo, the dollar tumbled despite the Bank of Japan's intervention, closing at 156. …

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