Dollar Makes Comeback as Banks Predict Intervention

Greenback back above 100 yen, gains on euro
By Jason Farago,  Newser Staff
Posted Mar 14, 2008 8:17 AM CDT
A Tokyo money dealer works by a currency indicator showing the U.S. dollar is traded at between 100.77 and 100.82 yen Friday, March 14, 2008.    (AP Photo/Katsumi Kasahara)
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(Newser) – The dollar made a recovery today after yesterday's disastrous fall, pulling back above 100 yen and gaining against the euro and the pound. The greenback's advance comes as securities firms speculated that the Fed and other central banks will collaborate to safeguard the dollar for the first time in 13 years. "The market is certainly on intervention watch," a currency trader told Bloomberg.

Yesterday saw the dollar hit a record low of $1.56 against the euro, approach parity with the Swiss franc, and fall below 100 yen for the first time since 1995. The Japanese finance minister said today he was worried about any further fall in the dollar's value, and UBS reported that a meeting of G7 treasury secretaries in Washington next month may launch an international effort to kick-start the lagging US currency.