Dollar Exceeds Most Major Currencies As Traders Put Upper Limits to the Test
NEW YORK -- The dollar ended global trading yesterday higher against most major currencies as traders nervously tested central bankers' threshold of pain.</br></br>The dollar rallied to an intraday high of 1.6932 marks and 1.4522 Swiss francs, levels unseen since April 1994 when the U.S. currency traded at 1.6935 marks and at 1.4525 Swiss francs, as traders sought to discern just how high central banks would be comfortable with the dollar trading.</br></br>After being knocked off a 34-month high against the mark when the Bundesbank denied that it wants the dollar to move higher, the U.S. currency later claimed a 34-month high against the Swiss franc when the Swiss government said it considers a weak Swiss franc as one way to help cure "untenable" unemployment.</br></br>The dollar gave up one yen and two pfennigs when the Bundesbank sharply denied a news service report Tuesday citing unnamed sources as saying the central bank would welcome a dollar advance to 1.7000-1.7100 marks over time.</br></br>"There is definitely no such opinion on the wish for a higher dollar," a Bundesbank spokesman said.