CURRENCY : Good Economic Forecasts Buoy Dollar; Gold Lower

NEW YORK — The dollar rose Tuesday against most major currencies after the government released a triple dose of strong economic data, including a report forecasting solid growth for the rest of the year.

Gold prices slipped, however. Republic National Bank of New York quoted a bid for gold at $431.50 an ounce as of 4 p.m. EDT, down $3 from late Monday.

Currency dealers said the dollar firmed after the government reported that the index of leading indicators--its chief barometer of future economic activity--increased a robust 1.4% in June, its sharpest gain in 18 months.

In two other economic reports for June, the government said sales of new homes shot up 8.4% and orders to U.S. factories for manufactured goods soared 5.5%.

“The economic numbers that came out were good for the dollar,” said George DeLuna, a vice president and trader for Irving Trust Co.

British Pound Falls

“They are bullish, but people are still worried about possible central bank intervention” to keep the dollar from rising too high, added Dan Holland, a trader at Discount Corp.

DeLuna said that while traders were impressed with the reported economic strength, they weren’t too concerned about inflation getting out of hand. He noted that the government revised downward, to 0.8% from 0.1%, the decrease in the May leading indicators.

In Tokyo, where trading ends before Europe’s business day begins, the dollar fell 0.85 Japanese yen to a closing 132.40 yen. The dollar was quoted at 132.95 yen later in London. Later, in New York, the dollar stood at 132.98 yen, up from 132.585 Monday.

In London, the dollar gained against the British pound, which fell to $1.7093 from $1.7130 late Monday. The pound fell to $1.70675 in New York from $1.7202 on Monday.

Other late dollar rates in New York, compared to late rates Monday, included: 1.87725 West German marks, up from 1.86795; 1.5628 Swiss francs, up from 1.5546; 6.3185 French francs, up from 6.3075; 1.20595 Canadian dollars, down from 1.20825, and 1,383.25 Italian lire, up from 1,377.25.

Late dollar rates in Europe, compared to late rates Monday, included: 1.8760 West German marks, up from 1.8758; 1.5635 Swiss francs, up from 1.5615; 6.3265 French francs, up from 6.3255; 2.1140 Dutch guilders, down from 2.1145; 1.2068 Canadian dollars, down from 1.2075, and 1,380.75 Italian lire, down from 1,381.50.

On the Commodity Exchange in New York, gold bullion for current delivery closed at $431.50 an ounce, down from $434.40 Monday.

Gold fell in London to a late bid of $433 an ounce, compared to $433.75 bid late Monday. Gold also fell to a bid of $433 an ounce in Zurich, down from $436.50 there late Friday. The Zurich market was closed Monday for a Swiss national holiday.

Earlier, in Hong Kong, gold fell $1.56 an ounce to close at $436.37.

Silver prices were mixed. Silver for August delivery finished at $6.792 an ounce on New York’s Comex, down from $6.867 on Monday. But in London silver rose to a late bid of $6.86 an ounce from Monday’s $6.81.

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