Dollar Plummets In Europe

The U.S. dollar plummeted Monday in Europe under pressure from the German mark, and reached a new low against the yen following an overnight devaluation of the Spanish and Portuguese currencies.

Gold prices rose.

Despite central bank intervention, the dollar continued to drop during the afternoon against most currencies, but regained some ground against the British pound, the Italian lira, and the Canadian dollar.

The dollar has been falling on perceptions that the U.S. Federal Reserve Board is finished raising interest rates for the time being, while higher rates are seen coming soon to Germany to keep inflation at bay.

Currency in Dollar in

Exchange Dollars foreign currency

Canada .7051 1.4182

France .2013 4.9675

Germany .7135 1.4016

Great Britain 1.6180 .6180

Japan .010800 92.59