Dollar Strengthens, Then Falls

The dollar rose early but then fell against the major currencies Thursday in thin, volatile trading as the foreign exchange market followed contradictory European central bank developments.

The dollar strengthened initially when the Dutch and Belgian central banks reduced interest rates in the morning. Traders assumed the German central bank, the most influential in Europe, would follow with a rate reduction.

But the German central bank said later Thursday that there would be no immediate interest rate cut. That sent the dollar falling again.

In late New York trading, the dollar was quoted at 84.65 yen, down from 84.71 late Wednesday.

Exchange Currency in Dollars Dollar in foreign currency Canada .7271 1.3753 France .2020 4.9515 Germany .7110 1.4065 Great Britain 1.5985 .6256 Italy .000606 1649.25 Japan .011813 84.65 Mexico .161290 6.2000