Dollar Falls Against European Currency

The dollar climbed to a six-month high against the Japanese yen Friday after a plunge in Asian stocks, but dropped to five-month lows vs. the German mark and Swiss franc as traders flocked to safer European currencies.

The dollar also hit a second straight four-month low vs. the British pound as a sharp drop in U.S. stock prices contributed to the dollar’s weakness against Europe’s major currencies.

The mark, franc and pound have been havens for currency traders selling yen during the Asian financial markets’ slump in the last two weeks. European currencies rose strongly against the yen Friday after Tokyo stocks plummeted to a two-year low, which affected the dollar’s position in both directions.