The dollar hit a new 33-month high against the yen Friday, helped by signs that Japanese interest rates will remain weak and Treasury Secretary Robert Rubin's assertion that a strong U.S. currency is desirable.
But the dollar ended sharply lower against the British pound, which strengthened on unexpectedly healthy economic data in Britain. The pound's rally indirectly undermined demand for the dollar and left it only marginally higher against most other key currencies."We had a mixed bag today," said Marc Chandler, a vice president at Deutsche Morgan Grenfell in New York. "Asia bid the dollar up, and the U.S. sold the dollar off."
In late New York trading, the dollar cost 113.31 yen, up from 112.87 yen Thursday. Earlier in European dealings the dollar climbed as high as 113.44 yen, the strongest since early January 1994. The British pound cost $1.5973, up from $1.5909.
The dollar snapped a five-day losing streak against the mark, finishing at 1.5210, up from 1.5170 Thursday, after a choppy day influenced by conflicting statements from German bankers on the interest rate outlook in Germany.
Traders said the dollar drew early strength partly from senior Japanese officials who reiterated their view that the economy is still vulnerable to weakness, suggesting that Japan's record low interest rates won't change for the foreseeable future.