Dollar Follows Stock Market’s Path

The dollar ended steady to mostly higher Tuesday, deriving strength from a mild rebound in the stock market and interest rate cuts in Europe.

The dollar’s gains partly erased losses from the day before, when a late sell-off in stocks helped drag the currency lower. But foreign-exchange dealers said the dollar remains vulnerable to nervousness on Wall Street, where lofty stock levels have increased expectations of a correction.

“Without a doubt, dollar traders in particular are very focused on what’s going on with the stock market and broader asset markets,” said Bob Near, a vice president at the Bank of New York. “There’s a lot of skittishness.”

Exchange Currency in Dollars Dollar in foreign currency Canada .7312 1.3677 France .1913 5.2275 Germany .6453 1.5496 Great Britain 1.6706 .5986 Italy .000656 1523.50 Japan .008781 113.88 Mexico .127389 7.8500