Dollar Plunges Against Yen
A wild selloff in the dollar gripped foreign-exchange markets today, hurtling it to a record low against the yen and alarming Japanese industrialists, who demanded steps to stabilize the wobbly U.S. currency.</br></br>The dollar panic aggravated political tensions in the Japanese government and reportedly compelled at least five big industrial countries to buy huge amounts of dollars in a vain attempt to halt its depreciation.</br></br>Traders and monetary officials blamed the dollar's demise on what they called the failure of a Washington financial summit earlier this week to demonstrate a solid program that would stop the dollar from falling further.</br></br>They also blamed U.S. Treasury Secretary James A. Baker III, who described the dollar's 1 1/2-year-old decline as orderly and helpful in eventually reducing the staggering American trade deficit. Traders saw the statement as an indication that the United States is not seriously interested in supporting the dollar.</br></br>Massive sell orders for dollars swamped the Tokyo Foreign Exchange Market as trading began, pushing the dollar down 2.90 yen to 142.50, its lowest close against the Japanese currency since exchange rates were set in the late 1940s.