FRANCE/USA: U.S DOLLAR CONTINUES TO SLIDE DESPITE INTERVENTION BY U.S FEDERAL RESERVE AND EUROPEAN BANKS

Record ID: 646309

  • Title: FRANCE/USA: U.S DOLLAR CONTINUES TO SLIDE DESPITE INTERVENTION BY U.S FEDERAL RESERVE AND EUROPEAN BANKS
  • Date: 3rd March 1995
  • Summary: PARIS, FRANCE AND NEW YORK, UNITED STATES (MARCH 3, 1995) (REUTERS TELEVISION - ACCESS ALL) PARIS, FRANCE (MARCH 3, 1995) 1. SV EXTERIOR OF BANK OF FRANCE 0.07 2. LV/SV EXT. OF PARIS BOURSE (2 SHOTS) 0.18 3. GV INTERIOR MONEY MARKETS 0.22 4. SV/VARIOUS TRADING IN PROGRESS/INDICATOR BOARDS/ TRADERS ON TELEPHONES (8 SHOTS) 1.01 NEW YORK, UNITED STATES (MARCH 3, 1995) 5. GV FOREIGN EXCHANGE TRADING ROOM AT CREDIT AGRICOLE, THE FRENCH BANK/SV STEPHEN FLANAGAN, FOREIGN EXCHANGE TRADER AT CREDIT AGRICOLE, SAYING THAT BY INTERVENING IN THE CURRENCY MARKETS IN AN EFFORT TO SUPPORT THE DOLLAR, THE WORLD'S MAJOR CENTRAL BANKS HAVE ONLY ACTED AS "SPONGES," --- BUYING DOLLARS BUT NOT ACTUALLY STRENGTHENING THE DOLLAR. (ENGLISH) 1.25 5. GV FOREIGN EXCHANGE TRADERS AT CREDIT AGRICOLE AT WORK 1.33 6. SV FLANAGAN SAYING THAT PRESIDENT CLINTON'S COMMITMENT OF 20 BILLION U.S. DOLLARS TO HELP MEXICO OUT OF ITS FINANCIAL CRISIS HAS WEAKENED THE DOLLAR IN INTERNATIONAL CURRENCY MARKETS AND MADE TRADERS QUESTION HOW MUCH THE U.S. TREASURY CAN ACTUALLY DO TO SUPPORT THE DOLLAR. (ENGLISH)/ TRADERS ON TELEPHONES (4 SHOTS) 2.41 Initials Script is copyright Reuters Limited. All rights reserved.
  • Embargoed: 18th March 1995 12:00
  • Keywords:
  • Location: PARIS, FRANCE/ NEW YORK, UNITED STATES
  • City:
  • Country: USA
  • Reuters ID: LVA8K574RW3T1YXUWMXT2IPJGYT1
  • Story Text: Central banks tried successive rounds of intervention to bolster the United States' (U.S.) dollar on Friday (March 3) but even aggressive buying by the U.S. Federal Reserve failed to stop it sliding.

    Dealers said the second attempt by about 15 European banks to steady the wobbly dollar had even less effect than the first, launched soon after markets opened.

    The dollar dropped below its overnight low of 94.85 yen to trade at a new post-World-War-Two low in Europe despite central bank intervention.

    The dollar failed to rebound sharply against the German mark and barely made any headway against the Japanese yen although the Bundesbank and other European banks hit the market with intervention that totalled less than $1 billion.

    The intervention was seen upon by New York traders as a token effort only. The Federal Reserve buying in the afternoon was seen as aggressive.

    Dealers and analysts thought the central bank would launch another assault next week but they were extremely doubtful it would have any impact. In the past when intervention has been to no avail the central banks have let it rest and let the interbank market get short before trying again.

    Stephen Flanagan a foreign exchange trader at the French bank Credit Agricole in New York, accused the world's central banks of acting as "sponges" - buying dollars but not actually strengthening THE currency.

    He reffered to the Canadian and the European central banks which had tried but failed to check the ebbing dollar throughout the day.

    Flanagan also said United States' president Bill Clinton's commitment of 20 billion U.S.-dollars to help Mexico out of its financial crisis had weakened the dollar in international currency markets.

    He said the event of the last days had made traders question how much the U.S. treasury could actually do to support the dollar.


  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2015. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register