Dollar Gives Ground

The dollar weakened in profit taking Thursday after Germany’s central bank fulfilled weeks of market expectations by lowering two key short-term interest rates.

Most of the dollar’s recent gains against European currencies were tied to forecasts of a German Bundesbank rate cut. With those gains already figured in, the dollar defied economic textbooks by falling against the mark and Swiss franc when their central banks dropped key interest rates.

Exchange Currency in Dollars Dollar in foreign currency Canada .7277 1.3742 France .2022 4.9465 Germany .6956 1.4377 Great Britain 1.5433 .6480 Italy .000627 1594.00 Japan .009852 101.50 Mexico .128700 7.7700