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Foreign Exchange for Tuesday, Nov. 25, 1986 : Dollar Off Against Most Currencies

November 26, 1986|Associated Press

NEW YORK — The dollar fell sharply Tuesday against most major currencies in what analysts said was a reaction to a government report that durable goods orders dropped in October and news that President Reagan's national security adviser had resigned.

Gold prices rose.

The Commerce Department's report of a 6% decline in October durable goods orders was weaker than many foreign exchange traders had expected, according to James T. McGroarty, vice president at Discount Corp. in New York.

He said the report indicated to some traders that the economy still was sluggish and raised the possibility that the Federal Reserve Board may take steps to encourage lower interest rates in an effort to stimulate growth. Lower interest rates reduce the attractiveness of dollar-denominated investments.

Dealers in Frankfurt cited the durable goods report in explaining why the dollar slipped below 2.00 West German marks for the first time in a month.

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