Dollar takes another dive

March 19, 1993|By Bloomberg Business News

NEW YORK -- The dollar tumbled against most currencies yesterday, hitting a record low against the yen, as traders expressed concern about the strength of the U.S. economic recovery.

"There's no reason to buy dollars right now because the U.S. economy isn't recovering as quickly as it once was," said Koichi Takenaka, an assistant vice president at the Industrial Bank of Japan in New York.

The dollar hit a post-World War II low of 115.65 yen late in the New York trading session, breaking the low of 115.85 yen set Feb. 22. It recovered to finish at 115.9 yen. The dollar fell almost two pfennigs from Wednesday's close, hitting 1.643 marks at 4:45 p.m. EST.

Gold for delivery in April jumped $1.50, to $331.20 an ounce, on the Commodity Exchange.

Trade figures released yesterday did the most to dampen investors' outlook on the economy, analysts said. The U.S. trade deficit widened 6 percent in January, to $7.3 billion.

The Federal Reserve Bank of Philadelphia said its index of economic activity fell in March, indicating a slowdown in manufacturing growth.

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