The U.S. dollar advanced over a broad front yesterday, spurred on by the project of higher U.S. interest rates and suggestions that the Bundesbank may cut its bank rate to stimulate the German economy.
The dollar's rally this week - interrupted by a spate of profit-taking Tuesday - saw the American currency gain almost another pfenning in Frankfurt yesterday to 2.3188 West German marks from 2.3085. This compared with a record low of 2.2463 marks on July 26.
In Zurich, the dollar rose to 2.4159 Swiss francs from 2.4078.
In London, where the dollar's strength carried the pound with it to some extent, sterling rose to $1.7392 from $1.7384. Sterling also rose on the Continent from 4.1855 to 4.2010 francs in Zurich and from 4.0150 to 4.03 marks in Frankfurt.
Other closing rates for the dollar included Paris, up from 4.8875 to 4.8957 French francs; Brussela, From 35.4750 to 35.61 Belgian francs; Amsterdam, from 2.4415 to 1.4430 guilders; and Milan, from 881.65 to to 881.80 lire.
The dollar also rose in Tokyo, from 265.90 to 265.98 yen.