The U.S. dollar hit another post-war low in Tokyo and remained weak on European foreign exchanges yesterday, but London dealers said the money markets were calmer than on Monday.
Gold was higher on the London bullion market gold closed at $187.875 an ounce, 50 cents up on Monday's close. In Zurich gold closed $2 higher at $188.135.
In Frankfurt brokers said the foreign exchange market was still disappointed by the support measures announced Monday by the United States and West Germany. "The market had expected more efficient measures," said one. "The dollar's run back seems to reflect the market's continuing disappointment."
But dealers said the impact of the swap agreement announcement had been absorbed. "we don't anticipate any further effect on the market," one dealer said.
In Tokyo, the dollar hit another post-World War II low of 233 yen to one dollar, compared with 236 Monday. The dollar fell to 232.95 yen in later trading in New York.
Japanese dealers predicted a nervous market and a weak dollar until the Carter administration takes "concrete measures" instead of primarily rily psychological ploys like the U.S. German sway arrangement.
Dealers in New York, however, said the dollar has little hope of substantial recovery until Japan and West Germany agree to reflate their economies - a measure the Carter administration has been urging strongly.
In London the pound got a boost from a higher-than-expected surplus in Britain's current account trade figures. The pound firmed to $1.9150 compare with $1.9105 Monday. However sterling eased in New York to $1,9090.
The Dollar closed in Frankfurt at 2.04675 marks compared with Monday's 2,0605 marks. In Zurich it was 1.94875 Swiss franc compared with overnight 1.9610.
In Paris, where the first round of the general elections gave the leftist coalition a smaller lead than expected, renewed confidence in the French Franc pushed the dollar down from 4.7550 to 4.7325 francs. This was just 1.25 centime above Friday's pre-election lowpoint of 4.72.