Defying efforts by policymakers on both sides of the Atlantic at restraining it, the United States dollar, continuing its rise, reaching its highest level in six years against the German mark.
(A) at restraining it, the United States dollar, continuing its rise, reaching
(B) at restraining it, the rise of the United States dollar continued, to reach
(C) at restraining it, the United States dollar continued rising, and it reached
(D) to restrain it, the United States dollar continued its rise, reaching
(E) to restrain it, the United States dollar is continuing its rise, and to reach
A is wrong because there is no main verb.
B is wrong because "to reach" should be "reaching" to represent the result of the action in the preceding clause.
C is wrong because the "it" in the first phrase refers to "rise" in the following clause.
E is out too because "and to reach" is trying to parallel with "to restrain"; as a result, it distorts the meaning. Also, "continuing" doesn't make sense either because the action is completed.
So D remains.
However, I don't understand what the function of the phrase in the beginning of the sentence. It seems like a noun phrase to me.
If it is a noun phrase, then "Defying efforts" becomes the apposition. It doesn't make sense either because "defying efforts" is similar to the US dollar in no way.
Any idea?
Thanks in advance.