Dollar action continues

Press, 5 August 1983, Page 6

Dollar action continues

NZPA Washington The Reagan Administration, in its first move to coordinate its actions in the foreign exchange markets with other countries, has taken steps to try to rein in the soaring dollar.

The Administration agreed, earlier this (northern) summer at the Williamsburg economic summit meeting, to consult more closely with its allies to try to achieve greater stability in exchange rates. But foreign traders said that they expected the moves would leave little effect and emphasised fresh advances for the dollar as evidence.

The joint intervention in the currency markets helped to halt the dollar’s advance on exchange

markets in the United States and Europe on Tuesday, and the dollar levelled off at rates just under records set on Monday. Early gains on Wednesday against the German mark and the French franc left the dollar still below Monday’s records. The dollar also advanced against the Japanese yen, closing slightly higher yesterday than on Tuesday. Joining the United States in trying to quiet the frenzied markets were West Germany, Japan, France and Switzerland. The value of the dollar against other main currencies was driven up late last week in what one analyst called “almost panic buying” by foreign investors expecting higher American interest rates.