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Dollar Skids Further; Gold Prices Advance : Slumps to Various Lows Against Swiss Franc and Four Other Major European Currencies

May 05, 1987|Associated Press

LONDON — The U.S. dollar fell today against all key European currencies except the West German mark, touching an record low against the Swiss franc and four- to six-year lows against four other currencies.

Gold prices soared by more than $10 an ounce in early trading, but settled back only slightly higher than Monday's late levels.

British Pound Jumps

The dollar slumped to a record low against the Swiss franc and fell below two Dutch guilders for the first time since Oct. 17, 1980.

It also fell to five-year lows against the French franc and the Italian lira.

The British pound rose to $1.6835, its highest level since Nov. 2, 1982, and up from $1.6810 in European trading late Monday.

Markets in London were closed Monday for a national holiday.

Against the trend, the dollar edged up from a seven-year low late Monday against the West German mark, bolstered by central bank intervention.

Intervention in Germany

The West German Bundesbank bought at least $19 million in a bid to strengthen the dollar, dealers said.

The dollar, hovering near a 40-year low against the Japanese yen, eased in London trading at 138.45 yen, down from 139.90 yen in Europe late Monday.

Tokyo markets were closed for the second-straight day for a national holiday.

London markets were closed on Monday.

The dollar was hit by continued fears that last week's meeting between President Reagan and Japanese Prime Minister Yasuhiro Nakasone had done little to solve the trade dispute between the two countries.

Dealers predicted renewed dollar buying by central banks to try to stem the dollar's fall.

Other late dollar rates in London, compared to late Monday's rates in Europe, included: 1.7720 West German marks, up from 1.7695; 1.4485 Swiss francs, down from 1.4515, and 5.9100 French francs, down from 5.9300.

Other Late Rates

Also: 1.9920 Dutch guilders, down from 2.0050; 1,265.75 Italian lire, down from 1,273.37, and 1.3444 Canadian dollars, down from 1.3457.

Gold bullion, partially boosted by the weak dollar, opened more than $12 an ounce higher in London, but fell back in a wave of selling at the New York opening.

In London, gold was quoted in late trading at a bid of $456.75 an ounce, up from $454.25 bid late Friday.

Advance in Zurich

Gains in Zurich

The London bullion market was closed Monday.

In Zurich, gold rose to $458.50 from $457.70 late Monday.

Earlier in Hong Kong, gold rose to a closing bid of $462.67 from $456.43 bid at Monday's close.

Silver bullion jumped in London to $8.32 an ounce bid, up from $8.07 bid late Friday.

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