LONDON — The U.S. dollar remained little changed Wednesday against key currencies in Europe's money markets, amid uncertainty over whether West Germany will cut its interest rates. Gold prices fell.
Policymakers of the West German Bundesbank meet Thursday to decide whether to cut the central bank's 3.5% discount rate in response to the U.S. Federal Reserve Board's discount rate reduction last week.
Dealers said expectations of a cut in the discount rate, the interest rate the Bundesbank charges on loans to commercial banks, were slightly weakened when the bank announced that it would not be holding a news conference after the council meeting.
Some investors said the announcement signaled the bank's intention to delay interest rate cuts. The dollar, which had gained against all key European currencies in early trading, retreated toward Tuesday's late levels.