Dollar Little Changed in Trading Abroad

The U.S. dollar remained little changed Wednesday against key currencies in Europe’s money markets, amid uncertainty over whether West Germany will cut its interest rates. Gold prices fell.

Policymakers of the West German Bundesbank meet Thursday to decide whether to cut the central bank’s 3.5% discount rate in response to the U.S. Federal Reserve Board’s discount rate reduction last week.

Dealers said expectations of a cut in the discount rate, the interest rate the Bundesbank charges on loans to commercial banks, were slightly weakened when the bank announced that it would not be holding a news conference after the council meeting.

Some investors said the announcement signaled the bank’s intention to delay interest rate cuts. The dollar, which had gained against all key European currencies in early trading, retreated toward Tuesday’s late levels.

In Tokyo, the dollar rose to a closing 155.25 Japanese yen from 153.94 yen at Tuesday’s close. Later, in London, it dropped back to 154.82 yen.

In London, the British pound fell to $1.4840 from $1.4880 late Tuesday.

Other late dollar rates in Europe, compared with late Tuesday: 2.0460 West German marks, down from 2.0480; 1.6507 Swiss francs, unchanged; 6.7075 French francs, up from 6.7050; 2.3115 Dutch guilders, unchanged; 1,413.75 Italian lire, up from 1,410.375; 1.3962 Canadian dollars, up from 1.39475.

Gold bullion fell in moderate trading to a late bid price of $380.50 an ounce, down from $382.00 bid in London and $381.00 bid in Zurich late Tuesday.

Earlier, in Hong Kong, gold fell to a closing bid of $377.10, down from $378.06 bid at Tuesday’s close.

Silver bullion fell in London to a late bid price of $5.11 an ounce, down from $5.145 dollars bid late Tuesday.