Dollar Falls In Late Sell-Off

The dollar dropped sharply late Tuesday, hurt by a growing view that its recent surge is exaggerated and an unconfirmed news report suggesting the Clinton administration wants to reduce the currency’s value.

The pullback in the dollar, particularly from its 33-month highs against the Japanese yen, caught some traders off guard. The selling intensified as the U.S. currency fell through some technically important short-term levels.

Also contributing to the dollar’s weakness was a further rebound in the German mark after its drop last week.

Exchange Currency in Dollars Dollar in foreign currency Canada .7435 1.3450 France .1941 5.1525 Germany .6560 1.5245 Great Britain 1.5975 .6260 Italy .000656 1524.20 Japan .008913 112.20 Mexico .128535 7.7800