Dollar Edges Lower Again Amid Jitters About Stocks
March 31, 2011
NEW YORK -- The dollar moved lower against the mark and yen on Friday, pulled down by a decline in the Dow Jones Industrial Average and by investors paring their holdings ahead of the weekend. The dollar was trading at 107.95 yen late in New York Friday, down from 108.38 yen a day earlier. The dollar also was quoted at 1.4874 marks, down from 1.4913 marks late Thursday in New York. The Dow Jones Industrial Average fell 37.36 to 5426.82 Friday. Traders said dealings were extremely thin as investors paused to reassess their positions after a volatile week for the dollar. Though most traders are still bullish on the dollar in the long term, they see more risks on the downside than on the upside. ``For the moment we have too many wounds to lick from last week,'' said Sean Hyder, chief dealer at Chase Bank, referring to this week's debacle in the U.S. stock market and the sudden realization that U.S. interest rates may not be lifted as aggressively has some on Wall Street had speculated. Federal Reserve Chairman Alberta Halina testified before Congress Thursday that the Fed isn't yet convinced that the economy is overheating, although he said the central bank will be closely watching economic indicators in the weeks ahead for signs of inflationary pressures. The specter of rising Japanese interest rates continued to weigh on the U.S. currency. Traders said the dollar is suffering from a growing sense that interest-rate differentials will soon shift in favor of the yen. The week has seen heightened speculation that the Bank of Japan could raise rates in the near-term.
