NEW YORK — The dollar rebounded Monday from five-year lows reached last week against some foreign currencies, reacting to speculation that European nations would act to keep the dollar from weakening further.
Gold prices rose, hitting a 3 1/2-year high in Europe.
Republic National Bank in New York quoted gold bullion at $440.00 an ounce, up $6.50 from Friday.
Fueling the dollar's rise were reports that finance ministers of the 12-member European Community had agreed to intervene in the currency markets to keep the dollar from falling further.
Speculation about possible coordinated dollar support arose following a Saturday meeting of the Common Market finance ministers, when the officials agreed to privately urge the United States to halt any efforts to drive the dollar lower.
The steep fall of the dollar has raised fears among Common Market members that a drop in their exports will mean jobs losses in Europe.