Newspaper article THE JOURNAL RECORD

Dollar Mixed in 'Uneventful' Trading; Gold Prices Mixed

Newspaper article THE JOURNAL RECORD

Dollar Mixed in 'Uneventful' Trading; Gold Prices Mixed

Article excerpt

NEW YORK (AP) - The dollar closed mixed against major foreign currencies in moderate, uneventful domestic trading Monday.

Gold prices rose. Republic National Bank in New York reported a late bid of $451.50 a troy ounce, up $3.50 from Friday's late bid.

Traders said the dollar's strength was a continuation of gains scored late last week, when it staged a two-day recovery after plunging Wednesday on news of a larger-than-expected May trade deficit.

The currency's activity during the day seemed to have ``more foundation in technical factors than in fundamentals,'' said James Vick, vice president and senior corporate trader at Manufacturers Hanover Trust Co.

Though the dollar made no dramatic moves, dealers said its trading ranges - particularly against the West German mark and the Japanese yen - have been revised upward.

The dollar moved up in Europe, where dealers said higher prices for oil, which is mainly traded in dollars, helped push the American currency higher as the currencies of oil importers like Japan weakened.

While fears over escalating tension in the Persian Gulf continued to attract some attention, traders said the spotlight has turned to the appearances on Tuesday of outgoing Federal Reserve Board Chairman Paul A. Volcker and Alan Greenspan, President Reagan's nomination for Volcker's replacement. Both are set to address congressional committees in Washington.

Volcker will report on the Fed's economic projections and money supply targets before a House banking subcommittee, while Greenspan faces confirmation hearings being conducted by a Senate banking committee.

The testimonies of both men ``have to be watched, but I don't think we're going to see any heavy statements coming out,'' said Ted Wolicki, a trader with Continental Illinois National Bank & Trust Co. in Chicago.

``The market has already known from (Volcker's) past statements how he feels about the dollar - he's wanted it to stabilize, and it pretty much has,'' Wolicki added. …

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