$U.S. very strong

Press, 3 April 1980, Page 8

$U.S. very strong

NZPA-Reuter London ~ The United States dollar rose sharply on world foreign exchange markets on Tuesday, and was oarticularly strong against the Japanese yen, despite measures by the Japanese central bank to defend the currency. The bank poured money onto ■ the Tokyo foreign exchange, selling dollars in an attempt to reverse the trend. Japan, _ and Switzerland, later announced a deal by which cash can be placed at th edisposal of the Japanese authorities for more' interventions on the markets. - The United States dollar rose from 249 yen to 253 in Tokyo but later drove the yen down in Europe to 254 to the dollar. London dealers said the yen had been only, temporar-

ily strengthened by the Japanese-Swiss agreement, which they felt was too small to have much effect, j. The dollar jumped to 1.9700 West German marks, compared with 1.9400 on Monday, but later eased slightly to 1.9600 marks. The pound sterling traded at $2.1400, . compared with $2.1600 on Monday. Unlike previous periods of weakness when it proved to be extremely. sensitive to news of world tensions, the dollar appeared to be unmoved either way by developments over the United States hostages held in Iran. The strength of the dollar at the moment comes from record high interest rates in the United States, and other comprehensive anti-inflation measures.