There will be many "todays" as people would scramble to allocate and re-allocate.....and get ahead...If your point is that there is no convincing rally in Gold, sure there is none.....Once Brazil will tank (and there were many rallies in Asia and Russia before capitulation) or some other significant event will propel POG to over $325, than we are obviously not in a clear....but I take my chances...:)
NEW YORK, Oct 8 (Reuters) - The dollar was mixed, ending an extremely volatile session lower against the yen amid talk that big funds were dumping once-profitable positions against the Japanese currency.
It rose against the mark, however, with the German currency pressured by comebacks in the pound and the yen and amid hopes Brazil will secure international aid.
Traders said another shocking fall in the dollar-yen rate to a 16-month low of 111.63 from above 120 came at the hands of hedge funds that sought to liquidate bets that the yen would fall, thereby protecting remaining profit.
A sharp partial recovery ensued, however, sparked amid talk the Federal Reserve Bank of New York had been checking rates in anticipation of intervention and other rumours, including that a large European bank had been buying dollars.
A New York Fed spokesman declined to comment on reports from traders that the central bank was either intervening or checking rates.
In late trading, the dollar was well off its low but still down at 118.90 yen from 120.75 at the close on Wednesday. It rose to 1.6350 marks from 1.6165.
Traders said the extension of Tuesday's 8-yen dive for the dollar put the level far out of whack given the recession in Japan and it was only the threat of heavy fund sales of dollars that prevented the return of value-minded investors.
''At some point, they're going to buy dollar-yen ... the fundamentals haven't changed much, although we do look a little more grim on this side of the Pacific, but it's difficult to buy yen when people are offloading billions (of dollars), as it seems,'' said Grant Wilson, a vice president at Mellon Bank.
Traders stressed economic fundamentals have been pushed aside in terms of importance to growing concerns about global recession that have led investors to flee riskier investments and, in doing so, the dollar.
Expectations for slower worldwide growth prompted a quarter-percentage point rate cut by the Bank of England on Thursday to 7.25 percent, following other reductions in U.S., Canadian and Spanish rates.
The rate cut did little to dent the pound, which eventually recouped much of its losses incurred against the mark over the past week. The pound rose against the dollar, ending at $1.7110 from $1.6995 on Wednesday.
Traders said the dollar's rise against the mark may have been greased after the International Monetary Fund and Brazil said they were near agreement on a plan of fiscal reforms that could win the South American nation financial support from global lenders.
The overall dollar tone remained heavy, however, amid persistent weakness in U.S. stocks and expectations the Federal Reserve will cut rates again.
In other trading, the dollar rose to 1.3180 Swiss francs from 1.3107 and to Canadian $1.5450 from C$1.5235.
18:21 10-08-98
10/08/98 18:21 |
