Dollar Falls, Gold Prices Rise in Active European Trading

LONDON — The U.S. dollar fell today against all major currencies in lively European trading a day after moving broadly higher. Gold prices rose.

The dollar’s decline was described by some dealers as a technical readjustment to Monday’s sharp gains, when the U.S. currency was bought heavily, despite U.S. interest rate declines and concerns about economic weakness.

Dealers said they expected the dollar to come under further pressure later this week with the scheduled publication of U.S. retail sales and industrial production figures for February.

Based on an unexpectedly big jump in the U.S. unemployment rate in February, the industrial output and retail sales numbers are expected to show that economic growth is sluggish, dealers said.

In London, the British pound rose to $1.4600 from $1.4425 late Monday.

In Tokyo, the dollar rose to a closing 180.02 Japanese yen, up from 179.60 yen at Monday’s close. Later, in London, it was quoted at 180.00 yen.

Other late dollar rates in Europe compared with levels late Monday were: 2.2640 West German marks, down from 2.2785; 1.9210 Swiss francs, down from 1.9332; 6.9650 French francs, down from 7.0075; 2.5520 Dutch guilders, down from 2.5740; 1,539.50 Italian lire, down from 1,548.50, and 1.39775 Canadian dollars, down from 1.3995.

Gold prices rose in light trading in response to the dollar’s losses, bullion dealers said.

Gold rose to a late bid price of $343 an ounce in London and Zurich, up from Monday’s late bids of $342 in London and $340 in Zurich.