Dollar Sets Highs Against British, French Currency --- West German Mark Is Pushed To 11 1/2-Year Low Point; U.S. Rate Rise Is Cited
The U.S. dollar, partly spurred by a rise in domestic interest rates, soared against major foreign currencies, setting records against the British pound and the French franc and an 11 1/2-year high against the West German mark.</br></br>In late New York trading yesterday, the dollar stood at 2.9365 marks and at 9.0075 French francs. It was the first time that the dollar had traded at more than nine francs. The British pound declined to $1.2874, the first time the pound had traded at less than $1.29.</br></br>Many traders said it was only a matter of time until the dollar rose to three marks or more.</br></br>The dollar's strength began in Europe on Monday as many traders returned from their summer vacations. It grew in the U.S. yesterday following the Labor Day holiday.</br></br>The only currencies to hold their own against the dollar yesterday were the Japanese yen and the Canadian dollar, which has strengthened in recent days on expectations of a Conservative Party victory in yesterday's Canadian election. Results last night indicated that the Conservatives had swept to a landslide victory.