German Rate Cut Boosts Dollar

The dollar soared against other major currencies Thursday, posting its largest one-day gain against the German mark in seven months, after Germany’s central bank unexpectedly cut two key interest rates.

“The cut was a complete and total surprise to the market,” said John Hanly, foreign exchange manager at Bank of Austria in New York. “The shock sent the dollar right up.”

But the U.S. currency’s gains came in Europe, just after the Bundesbank announced reductions in the discount and repo rates. On American markets, the dollar failed to surpass its lateEuropean highs.

Canada .7153 1.3980 France .2035 4.9135 Germany .7091 1.4103 Great Britain 1.5985 .6256 Italy .000584 1712.00 Japan .011186 89.40