Dollar Plunges As Yen Rebounds

The dollar fell sharply Tuesday, hurt by a warning from Treasury Secretary Robert Rubin about Japan’s trade surplus and rumors that an important Bank of Japan economic report would show surprising strength.

Those influences helped arouse a strong rally in the yen on the prospect that the Japanese currency’s 2-year-old retreat against the dollar may be coming to an end.

That helped push the dollar to a three-week low against the yen, a six-week low against the mark and a 10-week low against the pound.

Uncertainty about the direction of the U.S. stock market after two days of heavy losses also weighed on the dollar.

Currency in Dollar in Exchange Dollars foreign currency

Canada .7203 1.3884 France .1783 5.6075 Germany .6004 1.6656 Great Britain 1.6528 .6050 Italy .000601 1663.00 Japan .008213 121.76 Mexico .126534 7.9030