NEW YORK — The dollar turned higher against major European currencies in quiet, trendless trading Wednesday, stabilizing after Tuesday's steep sell-off.
Some dealers said the dollar received a lift near the close of European trading as investors interpreted congressional testimony by Federal Reserve Chairman Paul A. Volcker as ruling out an imminent cut in the discount rate, the interest on loans by the Fed to financial institutions. But the dollar gave up some of those gains in extremely quiet trading in the United States later in the day.
Gold prices were mixed in a narrow range. Republic National Bank of New York said gold bullion was bid at $313 an ounce as of 4 p.m. EDT, down $1.50 from the late bid Tuesday.
The dollar had tumbled about 1.9% on Tuesday as traders sold the currency to cash in on its 7.4% upward spurt in the previous three weeks and as expectations grew of another drop in U.S. interest rates.