The dollar rose slightly against the yen Wednesday on signs of stronger demand for new U.S. Treasury debt, but it weakened vs. the mark and other European currencies despite lower interest rates in Germany.

Traders described dealings as sluggish, reflecting a reluctance to bet heavily on the dollar’s direction pending the outcome of more economic news due later this week.

Currency traders were watching the Treasury’s quarterly refunding auction with acute concern, viewing it as a barometer of a new Japanese initiative to weaken the yen. They said the relatively robust demand for $13 billion in 10-year notes sold Wednesday suggested more active Japanese buying.

Exchange Currency in Dollars Dollars in foreign currence

Canada .7366 1.3576

France .2057 4.8605

Germany .7109 1.4066

Great Britain 1.5983 .6257

Italy .000631 1584.60

Japan .010912 91.64

Mexico .163159 6.1290