Dollar Eases on Decline in Rates, Keeps Most Gains Against the Yen
The U.S. dollar eased against most major foreign currencies yesterday in response to a slight decline in U.S. interest rates. But the currency held on to most of the gains made Wednesday against the Japanese yen, which weakened on indications that Tokyo wants to lower interest rates in an effort to spur the country's economy.</br></br>Lower Japanese interest rates would make yen-denominated investments less attractive.</br></br>The Reagan administration is taking a wait-and-see attitude toward recent hints that Japan may be about to slacken its efforts to bolster the yen against the U.S. dollar.</br></br>Although officials in Washington declined to comment publicly, top U.S. planners were said to be split over the apparent change in Japan's currency strategy.</br></br>The administration doesn't want Tokyo to allow any significant slippage in the yen's recent rise against the dollar.