CURRENCY : Central Banks Try to Pull Dollar Lower; It Ends Mixed

The dollar was mixed in foreign exchange trading Wednesday as it struggled against a concerted effort by central banks to bring the U.S. currency lower.

Traders reported that the Federal Reserve and other central banks entered the currency markets to sell dollars, and a published report in Tokyo said the members of the Group of Seven industrial nations had agreed to intervene jointly to try to stop the dollar’s climb.

But the attempt was only partially successful. The dollar rose sharply in Europe and was mixed in New York, where it still managed to advance against the Japanese yen.

The dollar closed at a 2 1/2 year high against the yen in New York, with the dollar rising to 150.35 yen from late Tuesday’s 149.85 yen. In Tokyo, the dollar advanced to 150.75 yen from 149.50 yen Tuesday.

The volatile market action occurred as officials from the Group of Seven nations--the United States, Britain, Japan, France, West Germany, Italy and Canada--met at a hastily arranged session in Japan to try to stem the high-flying dollar.

Richard Levine, vice president for foreign exchange at Elders Futures Inc., said the dollar appeared to be rising on commercial and investment demand, and not just on speculation.

“We haven’t seen this kind of demand for dollars since the end of 1989, and probably going back to the summer of 1989,” Levine said.