Fears of stiff new oil price increases by the Organization of Petroleum Exporting Countries (OPEC) meeting in Geneva drove the U.S. dollar lower yesterday on all major European markets except Milan. The U.S. currency gained in Tokyo.
Gold, acting as it customarily does when the dollar sags, jumped $4.50 an ounce in Zurich and $2 in London. In Zurich it closed at $246.375 an ounce against $241.875 Friday and in London at $245.625.
In London, where the pound sterling is largely protected against oil price increases by Britain's own North Sea oil, the pound jumped to its highest level against the doller since Nov. 1, 1978. The dollar closed in London at $2.0535 to the pound, down from $2.0375 at Friday's closed at 1.8567 marks against 1.8655 Friday, in Zurich at 1.6816 Swiss francs against 1.6887 Friday, in Paris at 4.2775 francs against 4.2935, in Brussels at 29.79 Belgian francs against 29.8550, and in Amsterdam at 2.0060 guilders against 2.0130. In Milan, the dollar bought 840.45 lire, up from Friday's 839.95 lire.
In Tokyo the dollar closed at 206.42 yen, up from 205.80 Friday.