Dollar Climbs Cautiously

The dollar edged further upward against the German mark and Japanese yen in thin trading Monday, but the U.S. currency’s strength was muted by uncertainty over whether Germany would lower interest rates.

Against other major currencies the dollar was mostly lower.

The dollar had strengthened Thursday and Friday when the Federal Reserve and the Bank of Japan both cut interest rates and then intervened Friday in currency markets to bolster the dollar’s value.

The intervention surprised traders because the dollar didn’t appear to need help. But a rising dollar and a falling yen are desired by Japan’s central bank, because the yen’s strength is hurting the Japanese economy.

Exchange Currency in Dollars Dollar in foreign currency Canada .7400 1.3513 France .2058 4.8585 Germany .7156 1.3975 Great Britain 1.5900 .6289 Italy .000618 1617.00 Japan .011485 87.07 Mexico .164474 6.0800