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Dollar Dips, Gold Flat in Edgy Trading

September 25, 1987|Associated Press

NEW YORK — The dollar edged lower against most major currencies Thursday in quiet, featureless trading, as some investors turned edgy ahead of the weekend meeting of finance ministers from major industrialized countries.

Gold prices finished flat in New York after rising in the Far East and Europe. Republic National Bank of New York quoted a bid price for gold bullion at $462 an ounce as of 4 p.m. EDT, unchanged from Wednesday.

Traders said the dollar came under some selling pressure from expectations that the "Group of Seven" finance ministers may not reach a consensus at their coming meeting in Washington. They said the nervousness was fueled by news reports indicating that West German and Japanese policy-makers could express unwillingness to stimulate their countries' economies, contrary to the Reagan Administration's wishes for coordinated economic action.

"Many people really are unwilling or unable to act until after the weekend," said James McGroarty, a vice president of foreign exchange at Discount Corp. in New York. "A potential of further decline in the dollar may be in the offing."

Many investors had purchased dollars Wednesday in the expectation that the group would reaffirm an accord reached in February in France to stabilize currency rates in a bid to hold down inflation worldwide.

The Group of Seven is comprised of the finance ministers from the United States, Britain, Japan, France, West Germany, Italy and Canada.

In Tokyo, where trading ends as Europe's business day begins, the dollar rose to a closing 143.75 Japanese yen from 143.53 yen on Tuesday. But it was down from 143.95 yen in New York late Wednesday. Japanese markets were closed Wednesday for a national holiday.

Later Thursday, in London, the dollar eased to 143.55 yen. In New York, the dollar was quoted at 143.46 yen, down slightly from 143.95.

In London, the British pound fell for the fourth straight day to $1.6380 from $1.6425 late Wednesday. By the end of New York trading, the pound stood at $1.6426, barely changed from the $1.6425.

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