Pre-Holiday Dollar Fizzles
More indications of a weakening economy kept traders guessing about an interest rate cut and helped drive the dollar mostly lower Monday in very thin, holiday-shortened trading.
The dollar barely rose above the Japanese yen while falling against the German mark. Lower interest rates would make dollar-denominated assets less attractive to investors and reduce demand for dollars.
Traders also were looking overseas to Great Britain where Prime Minister John Major faces a fight over heading the Conservative Party. He resigned from the post last month in a bid to end political squabbling, and an unexpected rival has emerged for Wednesday’s election.
Exchange Currency in Dollars Dollar in foreign currency Canada .7285 1.3726 France .2070 4.8315 Germany .7244 1.3804 Great Britain 1.5980 .6258 Italy .000612 1633.60 Japan .011799 84.75 Mexico .160064 6.2475