Thu, 13 Oct 1994

Dollar loses ground as gold price gets lower

TOKYO (AFP): The dollar lost ground here yesterday with investors discouraged by an overnight fall overseas in the absence of incentives.

It closed at 100.15 yen, down 0.45 yen from the previous day's finish of 100.60 yen here and lower than 100.23 yen quoted in New York late Tuesday.

After opening at 100.28 yen, the greenback moved narrowly between 100.05 yen and 100.33 yen.

Spot turnover increased moderately from the previous day's US$5.62 billion to $6.16 billion.

The mark closed at 1.5453 to the dollar here, against 1.5451 the previous day.

In London, the mark rose against the main European currencies, as the market believes the ruling coalition under German Chancellor Helmut Kohl will remain in power after the federal elections on Sunday.

The mark climbed to 3.4212 French francs from 3.42 at the Tuesday close, but declined to 1,016.3 lira from 1,018.

The lira was hit after rumors of a judicial process against Italian President Silvio Berlusconi.

Sterling was little changed after better-than-expected inflation figures, and falling unemployment.

At 9:45 local time (08:45 GMT), the dollar was trading at 1.5421 marks from 1.5475 on Tuesday, at 99.78 yen from 100.35, at 1.2862 Swiss francs from 1.2892 and at 5.2763 French francs from 5.2987.

Sterling was trading at $1.5810 from #1.5785, at 2.4381 marks from 2.4427, at 157.75 yen from 158.40, at 2.0335 Swiss francs from 2.0350 and at 8.3418 French francs from 8.3641.

Gold closed lower in Hong Kong at $388.30-$388.70 an ounce, against Tuesday's closing rate of $389.30-$389.70, but higher than the opening rate of $387.90-$388.30. The market closes today for a public holiday. In London it rose to $388.25 per ounce from $387.75.