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Currency : Dollar Dips in Europe; Gold Up

November 27, 1987|Associated Press

LONDON — The dollar edged slightly lower against most major currencies in listless European trading Thursday, as many dealers stayed out of action due to the closing of U.S. markers for the Thanksgiving holiday.

Gold prices rose.

Currency dealers said business likely would have been quiet even without the closure of U.S. markets, as many participants said they had a neutral short-term view of the dollar.

Dealers said there was little motivation for now to move the dollar sharply up or down. Lending some support to the currency was last week's accord on cutting the U.S. budget deficit, which raised prospects for a meeting of monetary officials of the Group of Seven nations: the United States, Japan, Britain, West Germany, France, Canada and Italy.

In London, the dollar fell to a 5 1/2-year low against the British pound, which was quoted at $1.7945, compared to $1.7940 late Wednesday.

Other selected dollar rates late Thursday in London, compared to late Wednesday's rates, included: 1.6675 West German marks, down from 1.6700; 1.3690 Swiss francs, down from 1.3698; 5.6505 French francs, down from 5.6567; 1.8745 Dutch guilders, down from 1.8760; 1,226.50 Italian lire, down from 1,229.50, and 1.3095 Canadian dollars, unchanged.

In Tokyo, where trading ends as Europe's business day begins, the dollar rose to 134.75 Japanese yen from Wednesday's 134.52 yen. Later in London, the dollar was quoted at 134.55 yen.

Gold was quoted in late London trading at a bid of $477.50 a troy ounce, up 50 cents from late Wednesday. In Zurich, gold also closed at a bid of $477.50, up $1.50 from Wednesday's close.

Earlier in Hong Kong, gold fell $2.10 to close at a bid of $477.50 a troy ounce.

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