Скачать или смотреть USA: US DOLLAR GAINS IN EUROPEAN TRADING

(31 May 1995) English/Nat

The US dollar rose in European trading Wednesday after heavy intervention by the U-S Treasury and supportive buying from the Group of 7 industrialised countries.

The surprise intervention seems to have caught traders by surprise and sent the greenback surging in value.

The United States and other major industrial countries launched a surprise attack Wednesday in defence of the dollar.

Massive waves of buying the U.S. currency helped strengthen the dollar against the German mark and Japanese yen.

Currency traders said the coordinated intervention to buy dollars and sell marks and yen was done in massive amounts.

Countries whose central banks participated in the operation included the U-S, Japan, Germany, Britain, France, Italy, Sweden, Austria, Switzerland and Belgium.

Deputy Treasury Secretary Jeffrey Shafer explained why the action was taken.

SOUNDBITE:

This is in keeping with the G-7's assessment of late April and following through with that action.
SUPER CAPTION: Jeffrey Shafer, Assistant Treasury Secretary

Shafer, speaking to the Canadian-American business council, stressed the need for coordination so that trading partners will know what to expect in various markets.

SOUNDBITE:

There's a wide spread recognition that if we're going to rely on markets to guide economies on market-based financial actions then they have to be foreign markets.

SUPER CAPTION: Jeffrey Shafer, Assistant Treasury Secretary

The massive effort caught the markets off guard and sent the dollar surging in value.

SOUNDBITE:
I think this intervention came as a surprise and that's exactly when intervention should come. The impact, therefore, has been to cause a rather substantial rally in the dollar against European currencies and against the yen. And it's been widespread the intervention from a number of European banks as well as the federal.

SUPER CAPTION: David Horner, Merrill Lynch Currency Analyst

At their April 25 meeting, the leaders of the Group of Seven - had called for a stronger American currency.

Finance ministers and central bankers issued a statement pledging to
cooperate to bolster the ailing dollar.

However, the April statement was not backed up by any coordinated action.

SOUNDBITE:

But I do think in order to be successful and to stabilise the dollar here, and to form a basing bottom for the dollar which I think in fact is going to happen, I think the Germans are going to have to lower rates. They can't just intervene and then walk away from the market. There has to be some policy support for the intervention - I think we'll begin to see that when the Bundesbank meets. I would not be surprised to see them lower their repeat rate. I don't think they're prepared to cut their discount rate yet, but I think down the road they will.

SUPER CAPTION: David Hornier, Merrill Lynch Currency Analyst

Most economists believe that government intervention in currency markets has only a minimal impact in influencing a currency's value.

They blame the dollar's weakness on continued high trade deficits in the United States.

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