U.S. dollar sharply lower

Press, 9 October 1982, Page 23

U.S. dollar sharply lower

PA London Falling dollar interest rates in the United States and Europe sent the dollar down sharply from Tokyo to Paris in hectic trading today.

The dollar fell as stocks and bonds surged higher, buoyed by falling interest rates.

In New York, the Federal Funds rate for overnight money American banks lend each other was just above 9 per cent, after being as high as 12 per cent earlier in the week. Eurodollar rates in London fell about half a percentage point to just above 10 per cent.

The dollar’s fall began in Tokyo where trading ends before it starts in Europe. In early trading the American currency moved above the 275 yen barrier before falling to a closing 273.60 yen, down from 274.80 on Wednesday. In Europe, the British pound gained almost one cent to a late $U51.7020, compared with $1.6929 the day before.

As the dollar fell, investors turned to gold bullion. The price jumped nearly SUS2S an ounce in London, to $U5427.50, and nearly $l6 in Zurich.

Silver bullion moved up strongly also in London to be fixed at $8,468 a troy ounce, up from $8.26 at Wednesday’s close.