LONDON — The U.S. dollar closed lower against most currencies in European trading today as traders took profits from the dollar's rise of last week. Gold prices were mixed.
Rising interest rates kept the dollar from falling even further, currency dealers said. The interest rate on overnight dollar deposits in Europe rose of a percentage point to 8.375% Monday, making the dollar more attractive to investors.
The profit taking came as markets awaited Tuesday's release of the U.S. index of leading economic indicators. Today's report that sales of new single-family homes rose 8.9% in March had little effect on the dollar, dealers said.
The dollar rose against the Swiss franc and Canadian dollar.
The U.S. currency gained value last week in response to higher interest rates. Before that, bad news about the U.S. economy pushed the dollar into a two-month tailspin.