In Europe, US dollar reaches all-time highs
The dollar rocketed to all-time highs against major European currencies, bringing sharp French criticism of President Reagan's policies. Experts attributed the dollar's sharp rise to high US interest rates combined with a high American budget deficit and Treasury borrowing. In Paris, the dollar crossed the important 8-franc mark for the first time. The dollar also posted records against the West German mark and the Italian lira. American tourists were delighted with their increased spending power.