Dollar Regains Vigor

The dollar hit its highest level in months Thursday, rallying on demand for new U.S. government bonds, mark-selling by Italy’s central bank and positive comments from Treasury Secretary Robert Rubin.

The gains were pared later in the day by foreign exchange traders who sold the dollar to lock in profits.

Still, the dollar’s rally was considered somewhat unexpected because it came despite the lack of any fundamental economic news.

The U.S. currency’s strength also was surprising because of the German central bank’s decision Thursday not to lower interest rates.

Exchange Currency in Dollars Dollar in foreign currency Canada .7364 1.3580 France .2038 4.9065 Germany .7034 1.4217 Great Britain 1.5887 .6294 Italy .000629 1590.00 Japan .010787 92.70 Mexico .162999 6.1350