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Dollar Closes Higher in Day of Fluctuation : Budget Talks Create Uncertainty Abroad

November 17, 1987|Associated Press

NEW YORK — The dollar closed higher Monday despite fluctuations caused by uncertainty over budget talks in Washington.

Gold prices fell. Republic National Bank of New York quoted a bid of $463 as of 4 p.m. EST, down from $464.50 late Friday.

The dollar rose in early trading in New York and Europe, but pessimism about negotiations to reduce the federal budget deficit caused the currency to give up some of those gains, dealers said.

President Reagan, in a speech to the annual meeting of the American Council of Life Insurance, repeated his opposition to tax rate increases to reduce the deficit, and his remarks caused the dollar to slip. It later rose again on technical factors, dealers said.

The dollar has become "more sensitive to those comments than it had been," said James T. McGroarty, a vice president at Discount Corp.

European Fluctuations

Comments by Reagan also caused currency fluctuations in Europe, where the dollar climbed steeply in early trading and then retreated somewhat.

In London, the British pound was quoted at $1.7415, down from $1.7650 late Friday. In later New York trading, the pound fell to $1.7405 from $1.7700 late Friday.

In Tokyo, where trading ends before Europe's business day begins, the dollar rose 0.80 yen to a closing 136.85. Later, in London, it was quoted at 136.85 yen. In New York, the dollar was quoted at 137.125 yen, up from 135.835 late Friday.

Other selected late dollar rates in New York, compared to late Friday's rates, included: 1.71325 West German marks, up from 1.6875; 1.4080 Swiss francs, up from 1.3860; 5.7800 French francs; up from 5.7285; 1,255.00 Italian lire, up from 1,243.50; and 1.31725 Canadian dollars, down from 1.3182.

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