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CURRENCY : Dollar Gets Boost From Decline in Gold, Rumor

February 04, 1988|From Times Wire Services

NEW YORK — A plunge in the price of gold and rumors of another nuclear accident in the Soviet Union helped boost the dollar, which firmed against most major currencies in foreign exchange.

The dollar is considered a safe haven during times of international turmoil.

Dealers said the dollar's climb began early and accelerated when it breached 1.69 West German marks, a point when many technically oriented traders moved in to buy. They, in turn, were joined by traders who bought to repay borrowed dollars they had sold in anticipation of a decline in the U.S. currency.

In Tokyo, where global trading begins, the dollar closed at 127.88 Japanese yen, down from 128.90. The dollar traded at 128 yen in London. Later, in New York, the dollar stood at 128.425 yen, up from 128.35.

In London, one British pound cost $1.7675 late Wednesday, more expensive for buyers than Tuesday's late price of $1.7620. In New York, sterling fetched $1.76135, down from $1.7690.

Other late dollar rates in New York, compared to levels of late Tuesday, included: 1.6942 West German marks, up from 1.6832; 1.38525 Swiss francs, up from 1.3735.

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