P.M. BRIEFING : Banks Sell Dollars Again; Rates Fall
Leading central banks intervened to sell dollars for the third consecutive day today in a concerted drive to push the U.S. currency lower.
The dollar responded by dipping to 1.8815 West German marks and 140.55 Japanese yen, and currency dealers said speculation over interest rate rises soon in West Germany and Japan was helping the central banks in their campaign.
The central banks “smashed the market successfully,” said Walter Simon, a trader for Bank Julius Baer in New York. “The central banks want to regain respect. . . . It seems to be working,” he said.
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