Bank Inaction Hurts Dollar

The dollar fell Wednesday after Germany’s central bank declined to lower interest rates and elation waned over the Clinton administration’s new balanced budget plan.

The decline in the currency began overnight in Tokyo, where traders reacted with disappointment over Clinton’s blueprint to lower the budget deficit.

The dollar came under further pressure when Germany’s Bundesbank failed to lower interest rates, as some foreign exchange traders had expected it to do after a policy-making meeting on Wednesday.

In late New York trading, the dollar was quoted at 84.34 Japanese yen, down from 84.63 late Tuesday.

Exchange Currency in Dollars Dollar in foreign currency Canada .7241 1.3810 France .2036 4.9105 Germany .7148 1.3990 Great Britain 1.6120 .6203 Italy .000611 1638.00 Japan .011855 84.35 Mexico .161290 6.2000