Trade Pact Boosts Dollar

The dollar surged Wednesday, hitting its highest level against the yen in more than a month, on news of a U.S. agreement with Japan that averted a costly trade brawl.

Within hours of an 11:59 p.m. deadline, the United States and Japan announced they had reached a deal that would help American carmakers sell more vehicles and parts in Japan. The deal averted 100 percent tariffs that the United States planned to impose on 13 Japanese luxury imports.

The dollar rocketed to a high of 86.00 yen soon after word of the agreement was reached, then settled back to 85.68 yen in late New York trading, up 1.8 percent from 84.18 yen Tuesday. The dollar also fetched 1.3970 German marks, up from 1.3863 Tuesday.

Canada .7275 1.3745 France .2040 4.9020 Germany .7152 1.3982 Great Britain 1.5750 .6349 Italy .000611 1636.00 Japan .011659 85.77 Mexico .160000 6.2500