Support for dollar

Press, 6 December 1979, Page 25

Support for dollar

NZPA -Reuter London: The United States dollar on Tuesday recouped most of Monday’s losses against other major currencies in thin trading in world foreign exchange markets still anxious about Middle East developments. Apparently helped by central bank intervention the dollar recovered to trade on European exchanges at 1.7263 West German marks. On Monday it fell below 1.7065 marks at one point, It’s lowest level ever.

Gold, whose price continued to race ahead on the dollar’s weakness, and Middle East instability, retreated later. The gold price was fixed on the important London bullion market on Tuesday at 5U.5.431.20 an ounce, slightly down on Monday’s record London closing price of $431.50. In active Hong Kong trading its price equalled the $443 record fetched in Zurich last October when the gold price peaked after a massive switch into the metal by investors, and

speculators, worried about world economic prospects. The price of gold almost doubled during its summer and autumn surge, but failed to maintain its value above $4OO an ounce when mainly-American indicators showed that the feared recession was not likely to be as severe as first thought. The Japanese yen has been fluctuating in parallel with the dollar, as the same fears for oil supplies appeared to affect the two currencies equally.