Hashimoto Remarks Drop Dollar

The dollar ended mostly lower Monday, hurt by a surge in the British pound and a late-afternoon plunge in the U.S. stock market on remarks by Japanese Prime Minister Ryutaro Hashimoto.

Speaking at a luncheon in New York, Hashimoto said Japan’s continued purchases of U.S. Treasury bonds depends on exchange-rate stability.

Since Japan has accumulated hundreds of billions of dollars worth of Treasuries, the remarks were perceived as a threat by Japan to sell Treasuries, which would flood the market and increase the supply of dollars.

Currency in Dollar in Exchange Dollars foreign currency

Canada .7210 1.3870 France .1725 5.7975 Germany .5816 1.7195 Great Britain 1.6725 .5979 Italy .000594 1682.50 Japan .008699 114.95 Mexico .126072 7.9320