Dollar drops in wake of surge by yen; Clinton disputes Fed's chief on rates
NEW YORK -- The dollar stumbled yesterday as the yen drew strength from the third steepest rise in Tokyo stock market history, fueled by optimism over passage of Japan's long-stalled political-reform package during the weekend.</br></br>In addition, any hopes for a dollar recovery after Alan Greenspan, Federal Reserve chairman, said interest rates will rise eventually were immediately put to rest when President Clinton termed low interest rates "critical" to the U.S. economic recovery.</br></br>Late in New York, the dollar was quoted at 1.7345 marks, down from 1.7425 marks late Friday in New York. The U.S. currency also was changing hands at 108.70 yen, down from 110 yen. Sterling was trading at $1.5060, up from $1.4945.</br></br>About midday Tuesday in Tokyo, the dollar was trading at 108.25 yen and at 1.7340 marks.</br></br>The Nikkei index of 225 selected issues rocketed 7.8% to a three-month high of 20,229.12, after Morihiro Hosokawa, Japan's prime minister, pushed through the compromise reform package on which he had staked his political career.