The dollar drifted back yesterday despite an unexpected rise in the money supply when dealers evened out their positions ahead of the weekend. Gold was little changed.
Dealers said there was good two-way trading in the morning when the dollar generally was higher, but business slacked off after European markets closed for the weekend. The sharp drop in bond prices in response to the unexpectedly large $4.8 billion rise in the U.S. money supply also helped depress the dollar, dealers said.
In London, the pound rose to $1.28425 from Thursday's $1.2792; in New York, it rose to $1.2871 from $1.2766. European closing rates with late New York prices and Thursday's rates in parentheses: Frankfurt, 3.0775 marks, up from 3.0365 (3.06 vs. 3.078); Paris, 9.36 francs, up from 9.268 (9.3280 vs. 9.363); Milan, 1,967.70 lire, up from 1,941 (1,949 vs. 1,953); and Zurich, 2.5620 Swiss francs, down from 2.5775 (2.56 vs. 2.572). In Tokyo, the dollar rose to 248.32 yen from 247.37 yen; in New York, it was 247.83, down from 248.02.
In Zurich, gold finished at $314.50 an ounce, down from $318.50. In London, gold slumped to $314.75 from $318.50. Republic National Bank in New York closed cash gold at $314.75, up from $313.75.