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Dollar falls hard vs. Japanese yen

SHARE Dollar falls hard vs. Japanese yen

The dollar fell sharply against the Japanese yen in an afternoon selloff Friday after rumors of a Japanese plan to rescue its troubled banking sector coincided with word of a big sale of German marks to buy yen.

But the dollar's sharp drop, which took it down 1.5 yen from its high of the day, was largely dismissed as traders looking for an excuse to bring the currency down from six-month highs.Exacerbating the early afternoon fall, word spread of a big mark-for-yen deal by an unidentified Swiss bank, traders said.

The dollar rose slightly against the mark after Germany's central bank president suggested that the Bundesbank would follow a "steady-hand rate policy" while it waits to see the effects of its latest interest rate increase.