Dollar Dips; Week’s Fall Worst in 2 Years

The dollar fell again Friday against all major currencies, rounding out its steepest one-week decline since September, 1985.

The dollar was pushed down by a report of slower than expected economic growth and by comments by the Japanese finance minister that cast doubt on the effectiveness of a multinational agreement to support the U.S. currency.

In the week ended Friday, the dollar fell in New York to 142.25 Japanese yen from 149.94 and to 1.8137 West German marks from 1.8890.

The dollar was dampened Friday by a report that the U.S. economy grew at an annual rate of 2.3% in the second quarter, less than the earlier estimate of 2.6%.

More significant for the market was a statement by Japanese Finance Minister Kiichi Miyazawa in Tokyo that the targets for currency exchange rates agreed to earlier this year by Western nations were “very vague.”

Late dollar rates in New York, compared to late rates Thursday, included: 1.8136 West German marks, down from 1.8362; 1.5025 Swiss francs, down from 1.5195; 1.3221 Canadian dollars, down from 1.3254; 6.0730 French francs, down from 6.1275, and 1,314.38 Italian lire, down from 1,329.00.

Late dollar rates in Europe, compared to late rates Thursday, with last Friday’s rates in parentheses, included: 1.8195 West German marks, down from 1.8335 (1.8750); 1.5050 Swiss francs, down from 1.5207 (1.5580); 6.0880 French francs, down from 6.1315 (6.2615); 2.0505 Dutch guilders, down from 2.0690 (2.1075); 1,319.00 Italian lire, down from 1,329.50 (1,356.50), and 1.3262 Canadian dollars, up from 1.3254 (1.3310).