Dollar Likes Trade Talk

The dollar surged to a seven-week high against the Japanese yen Monday, amid optimism that the tough U.S. stance against Japan in a trade dispute eventually will help cut the bulging American trade deficit.

The U.S. currency also got a boost from a slide in the Japanese stock market over concerns that weak corporate earnings may signal that Japan’s economy needs more time to recover from a long slump. That sent traders scrambling to sell yen, which boosted demand for dollars.

“The dollar has really gained some ground vs. the yen,” said Michael Faust, a foreign exchange strategist at Bailard, Beihl & Kaiser, a money management concern in San Mateo, Calif.

Exchange Currency in Dollars Dollar in foreign currency Canada .7330 1.3642 France .1956 5.1115 Germany .6943 1.4403 Great Britain 1.5772 .6340 Italy .000596 1679.25 Japan .011450 87.34 Mexico .170068 5.8800