Budget Standoff Weakens Dollar

The dollar plunged Thursday as the rhetoric over the federal budget finally hit the currency markets. The Mexican peso’s troubles added further pressure to the dollar.

The dollar fell 2 percent against the Japanese yen and 2 pfennigs against the German mark.

A White House statement Thursday that there was no chance of averting a government shutdown next week triggered the dollar’s plunge.

In late New York trading, the dollar fetched 100.35 yen, down from 102.55 yen Wednesday.

Exchange Currency in Dollars Dollar in foreign currency

Canada .7386 1.3540

France .2060 4.8550

Germany .7105 1.4074

Great Britain 1.5800 .6329

Italy .000628 1592.00

Japan .009980 100.20

Mexico .125313 7.9800