Dollar Follows Bonds Lower

The dollar slumped Thursday, erasing gains of a day earlier, in reaction to a large sell-off in the American bond market and growing skepticism about the U.S.Japanese trade deal’s effectiveness.

Further hurting the dollar was the failure of Germany’s central bank to lower interest rates Thursday. The combined impact of the day’s developments convinced many traders that the dollar’s big rally of Wednesday was an aberration.

In late New York trading, the dollar was worth 84.44 yen, down from 85.68 yen Wednesday and nearly eradicating its gain on news of the U.S.-Japanese trade accord on the auto industry. The dollar also fetched 1.3795 German marks, down from 1.3970 Wednesday.

Exchange Currency in Dollars Dollar in foreign currency Canada .7266 1.3763 France .2064 4.8440 Germany .7250 1.3793 Great Britain 1.5990 .6254 Italy .000614 1628.00 Japan .011839 84.47 Mexico .160256 6.2400