Dollar Continues Recent Rapid Rise

The dollar hit 2-1/2-year highs against the mark and Swiss franc Friday in a rally powered by better-than-expected U.S. trade data and hints of lower German interest rates from two top Bundesbank officials.

The dollar also rose to another 45-month high against the yen, helped by the conspicuous lack of Japanese central bank intervention to stem the dollar’s rise and more economic anemia in Japan.

Treasury Secretary Robert Rubin further aided the dollar by declaring for the third time this week that a strong currency is desirable.

Traders who had bet on a lower dollar scrambled to buy dollars as it surpassed important technical levels against the mark.