Dollar rises again, based on interest rate prospects
The dollar traded at a record Paris high against the French franc Wednesday and a 10-year peak against the yen, fueled by expectations of higher American interest rates and by political and industrial unrest in Europe.
Dealers in Paris said the franc's weakness was due in part to uncertainty after Tuesday's replacement of Prime Minister Pierre Mauroy by Industry Minister Laurent Fabius. The dollar opened there at 8.7670 francs, a record European high although slightly below Wednesday's New York close.
In Tokyo, the yen touched a 10-month low of 243.60 to the dollar - a fall attributed by dealers to a sudden large order for the dollar from one importer.