White House Insists It Is Not Seeking Further Dollar Fall

The White House insisted today that President Reagan is not seeking a further decline in the value of the dollar, which continued its plunge by hitting another postwar low in Tokyo.

White House spokesman Marlin Fitzwater said Reagan stands by his statement of a month ago that “we are not seeking a decline of the dollar” and that the United States is working with its allies to establish “a basis for stable exchange rates.”

In laying out that policy, Fitzwater refused to comment on a statement by former Federal Reserve Chairman Paul A. Volcker that the dollar has fallen too far, kindling inflationary fears.

The dollar was still suffering aftereffects today from last week’s report that the U.S. trade deficit for October was far worse than dealers had expected.