P.M. BRIEFING : Central Banks Again Act on Dollar
Japanese and West German central banks today intervened in currency markets for the second consecutive day, driving down the value of the dollar in an effort to reduce the U.S. trade deficit.
The intervention followed broader action on Monday when the United States, Great Britain, Canada and France joined the Bank of Japan and West German Bundesbank in concerted dollar selling.
The actions are in line with a weekend statement by the Group of Seven industrial countries--the United States, Japan, West Germany, Great Britain, France, Italy and Canada--expressing displeasure with the dollar’s strength and fear that its rise in recent months could blunt improvement in the U.S. trade deficit.
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