CURRENCY : Dollar Falls in Uneventful Trading; Gold Prices Slip

NEW YORK — The dollar fell against most major currencies Tuesday in thin, uneventful trading.

Gold prices finished slightly lower in most markets. Republic National Bank in New York quoted a late bid of $459.20 an ounce as of 4 p.m. EDT, compared to Monday’s late bid of $460.30.

A lack of market-affecting news kept the dollar trading in a narrow range. The only significant move came when the dollar broke through the 124 level against the Japanese yen.

But unsubstantiated rumors that the Federal Reserve stepped in to support the currency helped push the dollar back up again, said Stephen Flanagan, an assistant vice president at Manufacturers Hanover Trust Co.

Traders also noted that an international meeting of chief foreign exchange dealers and managers in Hawaii this week may also be having a dampening effect on activity.

“It possibly is leaving some junior dealers manning the boards, and they may or may not have instructions to get too involved,” said Ron Sapiro, head trader at Continental Illinois National Bank & Trust Co. in Chicago.

The dollar closed lower earlier in Europe, where dealers said business was very quiet.

“Nobody knows what to do,” said one dealer at an American bank in London. “The big money is just sitting in cash deposits. People aren’t moving it around.”

In Tokyo, the dollar fell 0.55 yen to a closing of 124.25. In later London trading, the dollar was quoted at 124 yen. In New York, the dollar closed at 124.175, down from 124.515 yen.

Late New York Rates

In London, the British pound edged up to $1.8680 from $1.8675. But in New York, it cost $1.86725 to buy one pound, less expensive than Monday’s $1.86875.

Britain’s top Treasury official, Chancellor of the Exchequer Nigel Lawson, reiterated Tuesday that Britain should ensure that it maintain a stable pound while keeping the brakes on inflation.

Other late dollar rates in New York, compared to late Monday’s rates, included: 1.70065 West German marks, down from 1.70175; 1.4196 Swiss francs, up from 1.4166; 5.7420 French francs, down from 5.7560; 1,262.025 Italian lire, down from 1.263.50, and 1.2417 Canadian dollars, down from 1.24245.

Other late dollar rates in Europe, compared to late Monday’s prices, included: 1.7000 West German marks, down from 1.7030; 1.4150 Swiss francs, down from 1.4198; 5.7395 French francs, down from 5.7570; 1.9030 Dutch guilders, down from 1.9075; 1,261.80 Italian lire, down from 1,263.75, and 1.2412 Canadian dollars, down from 1.2427.

Gold bullion fell in London to a late bid of $457.75 an ounce, compared to late Monday’s $459.60. In Zurich, Switzerland, gold closed at a bid of $458. Zurich markets were closed Monday for a religious holiday celebrated in much of Europe. Friday’s bid was $455.50.

On New York’s Commodity Exchange, gold closed at $460.60, down from $462.20. Earlier in Hong Kong, gold fell 22 cents to close at $460.91 bid.

Silver finished at $6.754 an ounce on New York’s Comex, up from $6.738 on Monday. In London, the metal traded at a late bid of $6.71, little changed from late Monday’s $6.70.

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