Banks Intervene, Bolster Dollar

In their first concerted intervention since late September, the major central banks repeatedly bought dollars today, lifting the U.S. currency after it threatened to slide to historic lows against Japan’s yen.

The dollar rose to 1.7305 marks and 122.65 yen at midday in New York, from 1.7170 marks and 122.20 yen at Wednesday’s close. The U.S. currency, which earlier slid to its lowest Tokyo close ever against the yen despite Bank of Japan intervention, rose smartly after the Federal Reserve led a wave of nine central banks to buy dollars against the yen and the mark. The dollar ended slightly higher against most currencies in hectic European trading today, pushed up by intervention by U.S. and European central banks.