The dollar rose against other major currencies Friday, spurred by a positive U.S. employment report showing growth in the construction and real estate sectors.
The dollar also was bolstered by the U.S. Treasury and stock markets, which also found the report positive. Meanwhile in Japan, the government issued the gloomiest assessment of its economy in two decades.The dollar also benefited from a dreary assessment by a German central banker who said Germany and France, Europe's two strongest economies, aren't ready to join into monetary union next year.
Other dollar-positive factors, analysts said, included President Clinton's meeting with British Prime Minister Tony Blair, an indication that the nation is not going adrift during the White House sex scandal, and the United States continuing its military buildup for a possible strike against Iraq.
"We have concerns about monetary union, we got a little war and a strong economy," said Hillel Waxman, chief foreign exchange dealer at Bank Leumi Trust Co. "All those together feed into making the dollar" stronger.
In late trading in New York, the dollar rose to 124.12 yen, from 123.43 yen late Thursday. The dollar also settled in New York at 1.8086 marks, up from 1.7867 marks.
Although the dollar's trading against the yen was volatile all day, the U.S. currency got a boost as Japan's Economic Planning Agency said that Japanese economy was "stagnant," a harsh term not used since 1975. The agency said it couldn't tell if recovery or recession were next.