The dollar slumped to a two-week low against the German mark Tuesday as technical selling and concerns about the stability of Mexico combined to offset the positive effects of a rally in the U.S. bond market.
But the dollar ended only slightly lower vs. the Japanese yen. Selling of yen for marks and reports of largescale buying of U.S. Treasury securities by Japanese interests helped provide a floor for the dollar, analysts said.
In late New York trading, the dollar was quoted at 1.5087 marks, down from 1.5218 late Monday.
The dip against the mark and other key continental European currencies surprised many market participants, who had expected the dollar to continue tracking U.S. asset markets in the absence of other guiding factors.
Exchange Currency in Dollars Dollar in foreign currency Canada .7137 1.4011 France .1912 5.2290 Germany .6633 1.5076 Great Britain 1.5627 .6399 Japan .010149 98.53