Lubbock Avalanche Journal in Lubbock, Texas

Stability Returns To World Currencies After German Move

The dollar crisis cooled after Germany floated the mark, with the dollar losing value mainly against the mark, Swiss franc, Dutch guilder and Austrian schilling. Rates floated since May 10, likely settling about 4 percent above the old mark. Germany may move to a fixed rate later, IMF rules aside. Travelers face higher costs in Germany and Swiss, Austria, the Netherlands revalue. U.S. inflation keeps prices high, but exports gain price competitiveness. Speculators hope for a yen revaluation, but no signs. European distrust grows from persistent U.S. deficits and dollar surpluses in central banks.