Dollar Rebounds From Steep Plunge

The dollar recovered against the Japanese yen and German mark Thursday as traders grew uncertain about Japan’s plans to revive its ailing economy and weak currency.

A report that the U.S. trade deficit shrank in October also helped the dollar recoup some of its losses from Wednesday. The plunge came after Japan’s government announced a $15 billion tax cut and its central bank intervened in the market to sell dollars.

“The market at this point is just testing the Bank of Japan’s resolve,” said Lee Kassler, vice president of foreign exchange at Israel Discount Bank.

Exchange Currency in Dollars Dollar in foreign currency Canada .7030 1.4225 France .1682 5.9454 Germany .5632 1.7757 Great Britain 1.6653 .6005 Italy .000574 1742.50 Japan .007769 128.72 Mexico .123716 8.0830