Interest Rate Prospects Lift Dollar

The dollar rose in a volatile market against the German mark on persistent expectations that the German central bank will lower interest rates eventually, even if it failed to do so Thursday.

The strength also helped the dollar post gains against other major European currencies and the Japanese yen.

By 4 p.m. in New York, the dollar was quoted at 105.25 yen, up from 104.53 late Wednesday. The dollar was changing hands at 1.4730 marks, up from 1.4671.

Exchange Currency in Dollars Dollar in foreign currency Canada .7298 1.3703 France .1981 5.0475 Germany .6789 1.4730 Great Britain 1.5315 .6530 Italy .000643 1555.50 Japan .009501 105.25 Mexico .131752 7.5900