CURRENCY : Dollar’s Decline Continues; British Pound Heads Higher

NEW YORK — The dollar lost more ground Friday against nearly all major currencies, while the strong British pound continued to take the spotlight in worldwide trading.

Gold prices rose after falling overseas. Republic National Bank of New York quoted a late bid of $442 for an ounce of gold, up 50 cents from Thursday.

Robert Ryan, senior currency trader for Irving Trust Co., said sentiment toward the dollar remained bearish following recent central bank intervention intended to thwart the dollar’s previous rise.

He attributed the dollar’s decline in domestic trading Friday mainly to technical factors.

Overseas, currency dealers said the market remained confused about the near-term outlook for the dollar, with one British trader calling the rapid changes in sentiment toward the U.S. currency “scary.”

“People are stung and confused,” he said.

A dealer at a European bank in Frankfurt said he expected the dollar’s slide to bottom out at current levels but added that the market was hard to gauge. “There was absolutely no trend,” he said of Friday’s trading.

Drops Against Yen

Meanwhile, the British pound continued to rise, bolstered by Britain’s strong economy and prospects for higher interest rates there.

In London, the British pound was quoted at $1.7405, compared to $1.7265 on Thursday. Sterling fetched $1.74225 in New York, up from $1.7280.

In Tokyo, where the business day ends before Europe’s begins, the dollar fell 1.42 Japanese yen to a closing 132.08 yen. It fell in London to 130.58 yen. Later, in New York, the dollar stood at 130.84 yen, down from 131.575 yen late Thursday.

Other late dollar rates in New York, compared to late Thursday’s prices, included: 1.82775 West German marks, down from 1.8375; 1.5180 Swiss francs, down from 1.5278; 1.2009 Canadian dollars, up from 1.1979; 6.1665 French francs, down from 6.1980, and 1,352.55 Italian lire, down from 1,360.125.

Bullion Advances

Late dollar rates in Europe, compared to late Thursday, included: 1.8265 West German marks, down from 1.8375; 1.5175 Swiss francs, down from 1.5275; 6.1630 French francs, down from 6.2000; 2.0615 Dutch guilders, down from 2.0765; 1.1983 Canadian dollars, up from 1.1968, and 1,353.75 Italian lire, down from 1,363.50.

On the Commodity Exchange in New York, gold bullion for current delivery rose to $442.20 an ounce from $441.80 late Thursday.

Gold fell in London to a late bid of $442, compared to late Thursday’s $445.80. In Zurich, Switzerland, the bid was $442.50, down from $445.50.

Earlier, in Hong Kong, gold rose 43 cents to close at a bid $444.86.

Silver prices were lower. Silver bullion for current delivery fell on the New York Comex, to $7.606 an ounce from $7.737 late Thursday.

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