Dollar Hits 4-Year Low Against Mark
The dollar sank on Tuesday to more than four-year lows against the West German, Swiss and Dutch currencies.
The dollar’s fall was prompted by worse-than-expected U.S. economic figures, cuts in U.S. interest rates and a report that Chrysler Chairman Lee Iacocca said Treasury James Baker told him the dollar could fall as far as 150 yen, currency dealers said.
Iacocca had appeared at a Washington news conference after the auto maker released its first-quarter results. He said the yen remark was made in February and did not elaborate as to whether it was said in jest.
Gold prices rose. Bullion was quoted at $347 an ounce at 4 p.m. EST at Republic National Bank, up $3.25 from Monday’s bid.
The dollar drifted below 2.20 West German marks for the first time since October, 1981, and hit its lowest levels since January, 1982, against the Swiss franc and Dutch guilder.