Dollar Gains As Stocks, Bonds Rally

The dollar rose against other major currencies Tuesday as U.S. stock and bond markets rallied on favorable inflation data and traders believed U.S. officials would not move to weaken the dollar.

The Labor Department reported that consumer prices rose only 0.2 percent last month, a surprisingly low rate of inflation that spurred a jump in bond prices and in turn bolstered stocks and the dollar.

Traders also bought dollars on the belief that U.S. officials will not publicly attack the dollar’s strength against the yen at this weekend’s meeting of global finance chiefs.

Exchange Currency in Dollars Dollar in foreign currency Canada .7187 1.3914 France .1682 5.9447 Germany .5650 1.7700 Great Britain 1.5954 .6268 Italy .000579 1726.00 Japan .008247 121.25 Mexico .128750 7.7670