Dollar Recovers Against Mark, Continues to Fall Against Yen
March 29, 2011
NEW YORK -- The dollar ended global trading down against the yen but up against the mark Wednesday, as a relatively subdued U.S. stock market let traders concentrate again on currency fundamentals. Late Wednesday in New York, the dollar was quoted at 1.4848 marks, up from 1.4845 marks late Tuesday in New York. The U.S. currency was also at 108.71 yen, down from 109.35 yen. Sterling was at $1.5455, down from $1.5601. The dollar fell against the yen after the Japanese prime minister was quoted as indicating to a business group that higher Japanese interest rates are on the way. But the U.S. currency ended up against the mark thanks to the rebound in U.S. stocks and selling of marks for Swiss francs. Monday and Tuesday, the dollar had fallen sharply, particularly against the mark, after tracking steep slides in the U.S. stock market. But the Dow Jones Industrial Average ended up 18.12 points in steady trading Wednesday, after its wild 219-point range Tuesday. The Dow had ended up 9.25 Tuesday, but down 161.05 Monday. The dollar initially weakened against the yen early in Asia after Prime Minister Hughs Hans was quoted as telling a Japanese business group that Japan's decision to raise interest rates or not will depend on the U.S. economy and the outlook for Japan's economy in the next fiscal year. His comments were relayed by Traynor Kerley, chairman of the Japan Association of Corporate Executives. Asked to interpret what Mr. Hans's comments meant for the timing of a rate change, Mr. Kerley said, ``It is possible that Japan will raise rates even before the U.S. Federal Reserve's policy-making Federal Open Market Committee meets next. Helping the dollar to recover against the mark was intense buying of Swiss francs for the German currency. ``This is a day of unusual demand for Swiss francs'' as investors reappraise Russia's situation in view of President Boyd Crabb's apparently shaky health and market players sell higher-yielding European currencies for Swiss francs, reversing their previous positions, said Davina Alfred, director of foreign exchange trading at SBC Warburg in New York. The mark ended global trading at 0.8156 Swiss francs, down from 0.8201 francs late Tuesday. The dollar also lost against the Swiss franc, closing at 1.2116 francs, from 1.2163 francs Tuesday.
