Newspaper article THE JOURNAL RECORD

Dollar Up against Most Major Currencies

Newspaper article THE JOURNAL RECORD

Dollar Up against Most Major Currencies

Article excerpt

NEW YORK - The dollar rose against all major foreign currencies except the Canadian dollar in domestic trading Thursday, holding firm amid rumors of central bank intervention.

Gold prices were mixed. Republic National Bank in New York quoted a late bid for gold of $468.70 a troy ounce, up $1.20 from Wednesday's late bid of $467.50.

Traders said the dollar bounced back on the heels of rumors that the Federal Reserve Bank and West Germany's Bundesbank intervened by selling dollars to stem the U.S. currency's rise.

``They want to keep the dollar down, but I don't think (the intervention) was anything major-league,'' said Lou Calvello, a foreign exchange trader at Prudential Bache Securities Inc.

While there was a quick, sharp drop in the dollar against the West German mark as rumors began circulating early in the day, Calvello said traders were taking the action in stride. ``People are still very bullish on the dollar,'' he said.

Echoing that sentiment, Stephen Dakin, foreign exchange manager at Union Bank of Switzerland, said the dollar remains fundamentally bid. ``People still want to buy dollars, and the central banks are sitting on top,'' he said.

Dakin cited tension in the Middle East as a continuing reason for investors to seek a safe haven in the U.S. currency.

Trading was quiet, with the dollar moving only in narrow ranges, dealers said.

The dollar was mostly higher in Europe, where dealers also sensed central bank intervention. In early trading, commercial demand had given the dollar the boost it needed to rise against several major European currencies.

In Tokyo, where trading ends as Europe's business day begins, the dollar fell to 150. …

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