U.S. dollar and metals higher

Press, 2 April 1980, Page 27

U.S. dollar and metals higher

NZPA Reuter . London The United States dollar rose to its highest level for. more than a year and a half against the West German mark on Monday' as it continued its strength on foreign exchange markets because of high, interest rates. in major American banks.

The prices of gold and silver ' were also higher, despite the battering they have taken recently from the high interest rates, which have made the dollar more attractive to investors than precious metals. The Frankfurt foreign exchange market reported a flood of buying which pushed the dollar to a high of 1.94 marks, the highest rate sinc.e September 1978. The West German central bank (Bundesbank) again intervened on the markets to protect the mark, selling an estimated S49M United States dollars. Dealers said that Bundesbank intervention over the last month has involved sales of nearly SBOOM. The latest in a series of interest rates rises, when many major United States banks put prime lending rates up to 19.5 per cent late on

Friday, gave an added boost to the dollar. The pound sterling dropped to $2.1600 from Friday’s $2.1700, but dealers said the pound remained strong, backed by high British interest rates, against most major currencies. Gold sold at around $493 an ounce, compared with $483.50 in Europe on Friday. Silver was trading around $13.49 an ounce, down from London’s $13.99 on Friday but up on its close of $l2 in New York at the end of last week. The price of silver moved higher on the New York Commodity Exchange on Monday as European investors began buying the precious metal at what they considered bargain prices. Analysts said that it seemed that last week’s selloff to meet margin calls on silver futures contracts owned by Texas oil billionaire Nelson Bunker Hunt, and his associates, had been completed. Silver for delivery in April was quoted at SUSI3.IO an ounce on the commodity exchange, up $l.lO from Friday’s close. ■ ■