U.S. Dollar Falls In Quiet Trading; Gold Rises $2.40
The U.S. dollar eased against most major currencies yesterday in quiet trading as dealers consolidated positions after two hectic sessions.</br></br>In late New York trading, the dollar stood at 2.2930 West German marks, down from 2.3115 marks Wednesday, and it fell to 180.05 Japanese yen from 180.60 yen. The British pound firmed to $1.4568 from $1.4538. But the Canadian dollar dropped to 71.89 U.S. cents from 71.95 U.S. cents.</br></br>Traders used the day to recover from the whipsawing of the two previous sessions. The dollar plunged Tuesday in reaction to Treasury Secretary James Baker's remarks that the Reagan administration wanted the dollar to fall further. But the currency rebounded Wednesday when Federal Reserve Board Chairman Paul Volcker said the dollar had "fallen enough."</br></br>Mr. Volcker's comments spooked a group of traders holding short, or oversold, positions, Wednesday, and sent them scrambling to cover those exposures.</br></br>Dealers and analysts said they expect the currency to level off in the near term, but then gradually fall. "People are much more cautious and much less sure of a decline in the dollar," said Peter Wild, vice president of foreign exchange for Bank Julius Baer & Co., New York. "But we're not ready for an upswing or reversal."