Dollar Posts Record Low Against Mark

The U.S. dollar fell broadly today in Europe, posting an all-time low against the German mark as worries over fundamental weakness in the U.S. economy gripped the market.

Gold rose in steady trading.

The dollar fell to 1.5485 German marks in Frankfurt from 1.5630 marks late Thursday. It was the lowest close in Europe in the mark’s 42-year history.

The previous closing low in Europe had been 1.5605 marks set Wednesday, and the dollar closed at an all-time New York low of 1.5525 marks Thursday.

Dealers said pessimism over the condition of the U.S. economy had eclipsed any bullishness in the dollar.

“The overall opinion is that the U.S. economy is so bad. . . . The general idea is to sell the dollar,” a dealer in Frankfurt said.

In Tokyo, the dollar fell 0.55 Japanese yen to 147.35 yen. In London, the British pound rose to $1.9195 from $1.8985 late Thursday.