Selling Erodes Dollar’s Early Gains

The dollar ended mostly lower Tuesday on benign U.S. inflation data, fears of a widened Japanese trade surplus and a Federal Reserve banker’s suggestion that the currency’s value has peaked.

The selling eroded the dollar’s gains earlier in the day on comments from top French and German officials that the euro would start on time but its strict fiscal underpinnings might be loosened.

Traders said most of the attention as the day progressed turned to a report due today from Japan on May trade flows and data from the United States on April trade due Thursday.

Exchange Currency in Dollars Dollar in foreign currency Canada .7213 1.3864 France .1713 5.8365 Germany .5778 1.7308 Great Britain 1.6388 .6102 Italy .000589 1697.50 Japan .008825 113.31 Mexico .126263 7.9200