Dollar Rises Again As Rally Continues

The dollar rose sharply against the mark and ended higher in other dealings Friday after the top economist of Germany’s biggest bank predicted the U.S. currency could rally to 1.8000 marks and 130 yen.

Treasury Secretary Robert Rubin also contributed to the dollar’s advance by reiterating his support for a strong U.S. currency on the eve of the Group of Seven industrialized nation summit in Washington.

Traders interpreted Rubin’s remarks as a sign that Britain, Canada, France, Germany, Italy, Japan and the United States would say nothing about excessive dollar strength in their summit communique, signaling that they’re content with its gradual ascent and aren’t ready to intervene yet.