Advertisement
YOU ARE HERE: LAT HomeCollections

CURRENCY : Dollar Tumbles; Analysts Blame Budget Talks Stall

November 18, 1987|Associated Press

NEW YORK — The dollar fell sharply Tuesday amid what analysts labeled rising pessimism over the negotiations in Washington to cut the federal budget deficit.

Gold prices edged higher. Republic National Bank of New York at 4 p.m. EST quoted gold bullion at $464.50, up from $463.00 Monday.

The dollar began weakening in overnight foreign trading after glum indications from congressional and White House negotiators that the already-foundering budget deficit talks were slowing even further.

In Tokyo, the dollar fell to a closing 136.05 Japanese yen from 136.85 yen late Monday, snapping a four-session rise. Dealers in Tokyo said the dollar fell sharply on rumors that budget talks had broken down and recovered partially when the rumors were denied.

Later in London, the dollar traded at 135.82 yen. In New York, the dollar later tumbled to 135.595 yen from Monday's 137.125 yen, a more than 1.1% drop.

Late dollar rates in New York, compared to late Monday's rates, included: 1.6906 West German marks, down from 1.71325; 1.38575 Swiss francs, down from 1.4080; 5.7300 French francs, down from 5.7800; 1,240.00 Italian lire, down from 1,255.00, and 1.31745 Canadian dollars, up from 1.31725.

On the New York Commodity Exchange, gold for current delivery rose to $464.90 from $463.30 at Monday's close.

Advertisement
Los Angeles Times Articles
|
|
|