Dollar Weakens On Mark’s Strength

The dollar slumped Wednesday, backsliding toward record lows vs. key currencies on anxiety over U.S. exposure to Mexico’s malaise, signs of domestic inflation and voracious demand for the mighty German mark.

The dollar’s weakness reversed a partial rebound on Tuesday, when evidence of benign U.S. inflation incited a strong rally in American stocks and bonds, which created a higher demand for dollars needed to buy them.

Traders said the dominant theme in the foreign exchange market Wednesday was the relentless appetite for the German mark.

Exchange Currency in Dollars Dollar in foreign currency Canada .7065 1.4154 France .2022 4.9455 Germany .7197 1.3895 Great Britain 1.6002 .6249 Italy .000593 1687.63 Japan .011161 89.60 Mexico .138313 7.2300