Dollar Continues To Gain Strength

The dollar surged in currency trading Thursday and gained more than 3 percent against the German mark, the biggest single advance in almost four years, amid optimism Congress will tackle the U.S. budget deficit.

The dollar also was boosted by large-scale buying from investors and traders who had sold the dollar short, or wrongly bet the currency would fall. They bought dollars to minimize their losses, creating even more demand for dollars in what’s known as a short-covering rally.

In late New York trading, the dollar was quoted at 85.65 Japanese yen, up from 83.91 late Wednesday and the highest level in more than a month. It also was changing hands in New York at 1.4320 marks, up from 1.3880.

Currency in Dollar in

Exchange Dollars foreign currency

Canada .7405 1.3505

France .1986 5.0360

Germany .6968 1.4352

Great Britain 1.5570 .6423

Italy .000605 1654.00

Japan .011621 86.05

Mexico .170358 5.8700