Dollar Surges Despite Trade Gap

The dollar overcame weakness from a record U.S. trade deficit and surged Thursday after Federal Reserve Chairman Alan Greenspan strongly hinted the central bank will raise interest rates next week.

In a congressional appearance, Greenspan’s repeated references to the need for preventive efforts to thwart inflationary pressure in the economy were interpreted by currency traders as the most persuasive evidence yet that the Fed’s policy-making committee will increase rates at its meeting next Tuesday.

Exchange Durrency in Dollars Dollar in foreign currency Canada .7235 1.3788 France .1751 5.7100 Germany .5947 1.6816 Great Britain 1.5881 .6297 Italy .000591 1692.00 Japan .008081 123.75 Mexico .126310 7.9170