The dollar surged higher against the Japanese yen Friday amid concerns that Japan’s new stimulus package would not lift the country from its economic malaise.
The U.S. currency also rose against the German mark after the central bank said that big debts burdening Italy and Belgium may hurt the stability of the single European currency that is to debut on Jan. 1, 1999.
In late New York trading, the dollar was quoted at 130.33 yen, up from 128.29 late Thursday. The U.S. currency also was changing hands at 1.8266 marks, up from 1.8192.
The dollar’s gains were extended after Standard & Poor’s downgraded credit ratings for some big Japanese banks, making investors nervous about buying Japanese assets.