Russian Election Influences Dollar

The dollar rallied from a loss to finish higher against the German mark on Friday, drawing strength from traders looking for safety ahead of the weekend Russian presidential election.

Traders, unsure which way Russia would turn in Sunday’s vote, decided to invest in the dollar rather than other currencies that might weaken if Boris Yeltsin looses to resurgent Communists.

Yeltsin had a slim lead in polls that many view as unreliable. If Yeltsin doesn’t win a majority he would have to face a runoff, likely against Communist Party leader Gennady Zyuganov.

Investors initially were divided on whether to turn to the Swiss franc, the dollar or the mark as safe havens.