Dollar Rebounds From Stock Selloff

The dollar overcame weakness from an early stockmarket selloff Friday, rising against most European currencies on safehaven buying from uncertainties over France’s elections and European monetary union plans.

The rebound in the stock market as the day progressed also helped the dollar, which settled in New York at its highest weekly closing level in four weeks vs. the mark and highest weekly close in three weeks vs. the yen.

Traders said news from the Commerce Department that the economy grew at a 5.8 percent rate in the first three months of the year, higher than initial estimates, further contributed to the dollar’s firmness by suggesting that interest rates in the United States could rise.