IMF Leaders Seek to Calm Jittery Markets

World finance leaders wrapped up a tumultuous meeting of the International Monetary Fund on Friday with more words of assurance to nervous financial markets and further efforts to rescue the U.S. dollar.

The semi-annual meeting of the 151-nation IMF was dominated by the dollar’s steep plunge after four months of relative stability.

In an effort to brake the nose-dive, the United States and its allies launched a multimillion-dollar intervention effort, selling off their reserves of Japanese yen, German marks and other currencies and buying dollars.

There were indications Friday that the intervention was having some success as the dollar stabilized in Europe and edged up slightly in early trading in New York amid reports of further dollar purchases by the United States, West Germany and Britain.

Hasty Conference

Still, the dollar’s rout shattered the optimistic tone the finance ministers had hoped to impart in their first high-level discussions since the Oct. 19 stock market collapse.

Administration sources, who spoke on condition of anonymity, confirmed Friday that Treasury Secretary James A. Baker III held a hasty 10-minute conference with finance ministers from Japan and West Germany and Federal Reserve Chairman Alan Greenspan to discuss the dollar selloff.

Japan and West Germany have supplied the largest amount of reserves to buy dollars. Currency traders estimated that on Thursday alone the amount of intervention totaled as much as $700 million. Sources said the intervention continued Friday.

Canadian Finance Minister Michael Wilson told reporters that he found it encouraging that the markets had settled down somewhat on Friday following the intervention effort, which he termed a success.

“I think the reaction Thursday was one of surprise, but we all realize that the trade figures are erratic and as people reflected on that, things calmed down,” Wilson said.