Pound Plummets, Drags Dollar Down

The lofty pound tumbled Tuesday in a ferocious bout of profit-taking, reflecting worries about the stamina of the British currency’s spectacular run-up in recent months.

The sell-off mainly strengthened the mark and yen, pulling down the dollar to leave it mixed in global foreign exchange dealings one day after the U.S. currency jumped to nearly two-year highs against the mark and Swiss franc.

Traders said the catalysts for the pound drop centered on concerns by British exporters about the pound’s strength, as well as the possibility that Britain might participate in Europe’s single currency in two years.

Exchange Currency in Dollars Dollar in foreign currency Canada .7409 1.3497 France .1891 5.2876 Germany .6423 1.5568 Great Britain 1.6445 .6081 Italy .000650 1538.50 Japan .008827 113.29 Mexico .127016 7.8730