Newspaper article THE JOURNAL RECORD

Dollar Moves Higher in Quiet Trading; Gold Prices Declines

Newspaper article THE JOURNAL RECORD

Dollar Moves Higher in Quiet Trading; Gold Prices Declines

Article excerpt

NEW YORK (AP) - The dollar edged higher against most major foreign currencies in quiet, uneventful trading Thursday, as market participants awaited the release of several key economic indicators on Friday.

Gold prices declined. Republic National Bank of New York quoted a bid of $469.25 a troy ounce as of 4 p.m. EDT, down from $472 late Wednesday.

``We still seem to be stuck in this narrow (trading) range,'' said Dan Holland, a currency dealer for Discount Corp. ``The market is looking forward to the long weekend.''

Participants were hoping to gain clear signals about the shape of the economy from Friday's economic statistics: revised gross national product and corporate profits for the first quarter, as well as retail prices and durable goods orders for April.

Traders said the dollar drew some support early in the U.S. trading day from revived rumors that the Federal Reserve was set to raise the discount rate, the interest it charges on loans to its member banks. Speculation has been growing recently that the Fed could hike the discount rate in an effort to head off inflationary pressures.

An increase in the discount rate would likely prompt banks to raise their interest rates on loans. The action would bolster the dollar by raising the cost of borrowed money.

``People bought a few dollars this morning'' in response to the speculation about a discount rate increase, said Didier Javice, a dealer for investment firm Goldman, Sachs & Co.

In Tokyo, where the global trading day begins, the dollar edged up to 140.03 Japanese yen from 139.50 yen Wednesday. Later, in London trading, it was quoted at 140. …

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