Dollar Regains Its Bearings

The German mark surged Monday, hitting record highs against the British pound and Italian lira, as the collapse of Barings PLC prompted a sterling sell-off that spilled over into other European currencies.

News of the prominent British investment bank’s failure due to huge losses on Japanese stock futures sparked a global flight to quality. The turmoil also highlighted concerns about political and financial troubles in numerous European countries, notably Italy and Spain.

The dollar initially was caught in the sell-off and fell against most key currencies in Asian and European dealings. But the dollar rebounded in U.S. trading as dealers took profits from the mark’s strength.

Exchange Currency in Dollars Dollar in foreign currency Canada .7163 1.3960 France .1944 5.1435 Germany .6803 1.4700 Great Britain 1.5827 .6318 Japan .010325 96.85