Dollar Breaches 121-Yen Barrier

The dollar surpassed 121 yen for the first time in nearly four years Tuesday and hit another 2-1/2-year high against the mark, powered by new evidence of U.S. economic vitality and no sign of Japanese intervention.

The U.S. currency got an added boost by a big surge in the U.S. stock and bond markets on the latest domestic economic data, which depicted benign inflation and a 7-year high in consumer confidence.

Although stocks and bonds surrendered their gains late in the day, the dollar remained strong. Many traders who had been expecting a pullback in the dollar became dollar buyers instead, believing the currency likely would next test the 125-yen level.

Exchange Currency in Dollars Dollar in foreign currency Canada .7462 1.3401 France .1799 5.5600 Germany .6066 1.6485 Great Britain 1.6179 .0436 Italy .000619 1616.00 Japan .008254 121.15 Mexico .128041 7.8100