Dollar Up in Busy European Trading

The U.S. dollar rose in busy European trading today, but reported central bank intervention dampened a wave of buying that had been sparked by strong U.S. employment figures.

Dealers said the dollar entered the European market on an upswing and climbed higher in the morning on expectations, later fulfilled, of improved employment figures.

Later in the day, dealers said coordinated intervention by the West German Bundesbank and the Dutch, French, Italian, Belgian, Swiss and Austrian national banks blunted the dollar’s gains.

“It’s only a question of time before the 1.90-mark (level) is tested,” a dealer at a West German bank said. “The central banks can slow it down, but not stop it.”

In Tokyo, where trading ends before Europe’s business day begins, the dollar fell 0.48 yen to a closing 129.27 yen. Later, in London, it was quoted at 129.40 yen.

In London, the dollar rose against the pound, which cost $1.7410, cheaper than $1.7515 on Thursday.