P. M. BRIEFING : Attempts to Cool Down Dollar Fail
Leading Western central banks again intervened on currency markets today to brake a dollar rally, but the currency bounced back and resumed its climb.
It was the 10th successive trading day on which central banks sold dollars to back up a warning last month by the world’s leading industrial nations that an overvalued dollar could hinder world economic growth.
Today’s intervention was led by the U.S. Federal Reserve and was joined by the central banks of Britain, Switzerland, France, Belgium, Austria, Canada, Italy and Spain.
But after a brief decline the dollar later regained its upward surge, and by late morning it traded in New York at 1.8905 marks and 142.65 yen, up from Thursday’s close of 1.8840 and 1.4235.
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