NEW YORK — The dollar was subjected to wide swings in light trading Tuesday, rising in Asia and Europe but giving up most of its gains later in the United States as investors waited for clues on the strength of the American economy.
Gold also was mixed, responding to the dollar's gyrations. Republic National Bank in New York said gold bullion was bid at $321.75 an ounce as of 4 p.m. EST, up $3.75 from the late bid Monday.
After falling nearly 10% in five weeks, the dollar rebounded Monday and kept rising in the early going Tuesday. But when the dollar failed to advance through levels viewed as important by traders who follow technical market trends, selling picked up and the dollar retreated.
For example, the dollar, which traded as low as 3.03 West German marks Monday, climbed above 3.15 marks in Europe on Tuesday. But it later fell below 3.10 marks in the United States.