Dollar Peaks Vs. Yen, Retreats

The dollar fell Thursday after touching a new 4-year high against the yen, pulled down by rumors of central-bank selling, unexpectedly weak U.S. economic data and progress on a balanced budget in Washington.

The slowdown in April manufacturing, surge in jobless claims and reports of an imminent balanced-budget deal fed into speculation that inflationary pressure and borrowing costs will diminish.

Currency traders reasoned that lessened the likelihood the Federal Reserve will raise interest rates at its May 20 meeting.

Exchange Currency in Dollars Dollar in foreign currency Canada .7209 1.3872 France .1723 5.8050 Germany .5808 1.7217 Great Britain 1.6242 .6157 Italy .000587 1703.00 Japan .007905 126.51 Mexico .125897 7.9430