NEW YORK — The dollar rose against most major currencies Tuesday, buoyed by the U.S. government's latest appraisal of the economy. Gold fell.
The Republic National Bank of New York quoted gold at $339 an ounce as of 4 p.m. EDT, down $1 from Monday's bid.
Charles V. Spence, a vice president for international money management at Security Pacific National Bank in Los Angeles, said the Commerce Department report that the gross national product grew at a 3.7% annual pace during the first three months of the year surprised the currency markets. Immediately, after the report, in U.S. and overseas foreign exchange markets, dealers rushed to buy dollars, analysts said.
Some dealers bought back dollars that they had previously sold in speculation of a weakening GNP.
Also bolstering the dollar were remarks attributed to an official of the West German central bank, who reportedly indicated his government believed the dollar had fallen far enough.