P.M. BRIEFING : Dollar Drops Sharply After Report
The dollar fell sharply today because of a report that the United States, West Germany and Japan have secretly agreed to knock it down decisively between now and September.
It fell in the United States on Wednesday, tumbled further in Tokyo today and was swiftly marked down by more than two West German pfennigs when London dealers began trading this morning.
The cause of the reversal in the dollar’s fortunes--it had risen by about 15% this year--was a report by Washington-based economic consultants Smick Medley International Inc.
The report said the Group of Three nations, the United States, West Germany and Japan, had agreed to slap down the dollar by September in a letter dated Tuesday of this week.
It quoted a “top G-3 official” as saying: “We are going to ratchet down the dollar, nothing fast, just unwinding the damage markets did to the dollar in the last few weeks.”
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