Foreign Exchange : Dollar Falls Against Most Currencies

NEW YORK — The dollar fell against most major world currencies on Wednesday. Gold prices rose.

At Republic National Bank gold bullion stood at $381.00, up $1.15 an ounce from Tuesday.

Analysts attributed the decline to technical market factors and dampening of speculation that West Germany and Japan would cut their discount rates.

While the dollar moved up against most currencies in Tuesday’s trading, Jim Bovery, an analyst at Irving Trust Co., said that Tuesday’s volume was very thin--and hence vulnerable to quick changes.

Talk that the West German central bank Bundesbank might lower its 3.5% discount rate, the interest rate Bundesbank charges on loans to commercial banks, had bolstered the U.S. currency on Tuesday.

Policymakers of the West German central bank meet Thursday to decide whether to cut its discount rate in response to the U.S. Federal Reserve Board’s discount rate reduction last week.