Japanese Rumors Send Dollar Down

The dollar fell against the Japanese yen and German mark Friday in reaction to rumors that Japan’s central bank intervened to halt the dollar’s recent gains.

Rumors began circulating that the Bank of Japan entered the market to sell dollars for yen after the U.S. currency reached an intraday high of 131.23 yen. The dollar’s ascent in early trading followed consecutive sessions in which it reached two-month highs against the yen.

In late New York trading, the dollar was quoted at 130.41 yen, down from 130.70 late Thursday. The dollar fell as low as 129.30 yen before rebounding somewhat. The U.S. currency also was changing hands at 1.8302 marks, down from 1.8341, weakened by its slide against the yen.