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FINANCIAL MARKETS : Currency : Dollar, Gold Steady in U.S.

September 29, 1987|Associated Press

NEW YORK — The dollar was mostly higher in Europe but little changed in U.S. markets Monday, reflecting traders' opposing views of the success of a weekend meeting of finance ministers from seven major industrial nations.

Gold prices also were little changed. Republic National Bank of New York quoted a bid of $460.05 for an ounce of gold, up from $460 on Friday.

Officials of the Group of Seven, comprising the United States, Canada, Japan, Britain, France, West Germany and Italy, reaffirmed at a Washington meeting their commitment to steady exchange rates to combat inflation.

European traders were pleased with the outcome of the session.

"The meeting appears to have been a success, and we do appear to be looking at stability for the coming weeks," one London dealer for a major American bank said.

But in the United States, foreign exchange traders were disappointed that more concrete steps did not emerge from the gathering, and analysts predicted that the dollar would fall in coming sessions.

"The market was looking for something over the weekend; nothing came out," said Ron Sapiro, vice president for foreign exchange at Continental Illinois Bank in Chicago.

Dollar Gains on Yen

"The market was disappointed in the outcome and really considers that the dollar should be lower from here," said Dan Holland, an assistant vice president and trader at Discount Corp. in New York.

In Tokyo, where trading ends as Europe's business day begins, the dollar rose for the fifth successive session to close up 0.42 at 144.22 yen. It was later quoted in London at 144.15 yen. In New York, the dollar rose to 144.38 yen from 143.55 yen late Friday.

It cost $1.6440 to buy one British pound in London on Monday, up from $1.6405 late Friday. In New York, the pound slipped to $1.63915 from $1.6420.

Other late dollar rates in New York, compared to late Friday, included: 1.82815 West German marks, up from 1.8210; 1.51615 Swiss francs, up from 1.5115; 6.0870 French francs, up from 6.0720; 1,318.25 Italian lire, up from 1,313.00, and 1.30865 Canadian dollars, down from 1.31275.

Other late dollar rates in Europe, compared to Friday, included: 1.8345 West German marks, up from 1.8217; 1.5153 Swiss francs, up from 1.5105; 6.0825 French francs, up from 6.0687; 2.0555 Dutch guilders, up from 2.0490; 1,317.30 Italian lire, up from 1,314.75, and 1.3130 Canadian dollars, down from 1.3140.

Gold slipped to $460 an ounce on the Commodity Exchange in New York from $460.10 Friday, but edged up in London to $461.90, compared to $461.50.

Tables, Page 21

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