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Technical Factors Prey on Dollar; Gold Ends Mixed

October 07, 1987|Associated Press

NEW YORK — The dollar retreated Tuesday against all key currencies except the Japanese yen.

Gold prices were mixed. Republic National Bank in New York quoted a late bid of $457.25 an ounce, unchanged from late Monday.

Currency dealers said technical factors were mostly responsible for moving the market Tuesday due to the absence of any fresh economic data.

"I think the market will focus more on next week's economic figures," said Ronald Holzer, chief dealer for Harris Trust & Co. in Chicago.

The government is scheduled to release its August merchandise trade report next Wednesday.

Adding a negative note to Tuesday's market was widespread speculation that West Germany was moving to raise interest rates to keep inflation in check, said James Vick, vice president and senior corporate trader for Manufacturers Hanover Trust Co. in New York.

Higher interest rates will ultimately help boost the West German mark, thus hurting the dollar, because it makes securities in that country a more attractive investment, Vick said.

In Tokyo, where trading ends as Europe's business day begins, the dollar fell 0.20 yen to a closing 147.00 yen. It slipped to 146.55 in London. Later, in New York, the dollar stood at 146.84 yen, up from 146.55 on Monday.

In London, the British pound cost $1.6315, more than late Monday's $1.6245. Sterling fetched $1.6337 in New York, up from $1.6285.

Other late dollar rates in New York, compared to Monday's close: 1.83285 West German marks, down from 1.83955; 1.5303 Swiss francs, down from 1.5330; 1.30375 Canadian dollars, down from 1.30825; 6.1025 French francs, down from 6.1205, and 1,323.375 Italian lire, down from 1,327.00.

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