Foreign Exchange for Tuesday, March 17, 1987 : Dollar Off Against Major Currencies

NEW YORK — The U.S. dollar declined against virtually all major currencies Tuesday although there was little news to affect trading.

Gold prices were narrowly mixed. Republic National Bank in New York quoted a bid of $405.75 for an ounce of gold, up from $405.50 late Monday.

In U.S. trading, the dollar moved in a narrow range with little news to sway it, according to James Pugh, a vice president in foreign exchange for Manufacturers Hanover Trust Co.

Pugh noted that the British pound was very strong, not only against the dollar but against other currencies, after the annual budget statement by Chancellor of the Exchequer Nigel Lawson.

Lawson announced a tax cut and a reduction in the British government’s borrowing, both of which were well-received on foreign exchange markets.

The pound closed at $1.5950, compared to $1.5778 on Monday. The close left the British currency at its highest level since May 31, 1983, when it was $1.6065.