LONDON — Rising interest rates pushed the U.S. dollar higher in thin, volatile trading today. The price of gold fell.
Currency dealers in London said the dollar was being underpinned by market sentiment that there was little chance of U.S. interest rates moving lower.
The interest rate on overnight dollar deposits in Europe increased of a percentage point to 8.25%.
Trading volume was low because most European markets were closed for May Day. No U.S. economic statistics were released that had any effect on currency markets, the dealers said.
The dollar closed in Tokyo at 252.50 Japanese yen, up from 251.40 yen Tuesday. Later, in London, the dollar was quoted at 252.90 yen.