The dollar drifted fractionally lower against most key currencies in European trading Tuesday afternoon. Gold prices fell. Late in London's trading day, the dollar was quoted at 1.6900 West German marks, down from 1.6923 marks late Monday. In Tokyo, the dollar climbed 1.70 yen to a closing 158.15 yen on Tuesday. Later, in London, it was quoted at 158.60 yen. The dollar held on to most of its overnight gains against the yen, a reflection of market expectations that the Japanese currency will remain under pressure without significant action on the interest rate front, or without clear signals that the Group of Seven nations are intent on supporting the yen. Finance officials from the seven countries met in Paris over the weekend. The G-7 includes Britain, Canada, France, Italy, Japan, West Germany and the United States. The dollar gained against the British pound which was quoted late Tuesday at $1.6345, compared with $1.6397 late Monday. Other dollar rates late in Europe compared with late Monday's levels were: 1.4955 Swiss francs, down from 1.4960; 5.6750 French francs, down from 5.6805; 1.9030 Dutch guilders, down from 1.9043; 1,240.00 Italian lire, down from 1,242.00; and 1.1613 Canadian dollars, down from 1.1615. Gold traded in London at a late bid price of $375.15 a troy ounce, down from $375.50 late Monday. In Zurich, the bid price was $375.25, down from $376.25 late Monday. Earlier in Hong Kong, gold fell $2.16 an ounce to close at a bid of $376.97. Silver bullion traded in London at a late bid price of $5.13 a troy ounce, down from late Monday's bid of $5.14.
