Dollar Declines Despite Efforts Of Six Nations --- Central Banks' Intervention Fails to Prevent Slump Even in Thin Trading
The dollar continued its December slump, declining slightly against most major currencies despite reports of modest, concerted intervention by at least six central banks.</br></br>Currency traders said some customers who had closed their books for 1987 returned to unload dollars yesterday, apparently trying to limit their losses from the U.S. currency's renewed dive of recent days.</br></br>As on Monday, the dollar's weakness spilled over into the stock market. The Dow Jones Industrial Average fell 16.08 points, to 1926.89. Prices of long-term Treasury bonds rallied late in the day, though, rising about $7.50 for each $1,000 face amount. Bond traders said they were encouraged by central bank intervention in support of the dollar.</br></br>The dollar has fallen 3.3% against the Japanese yen and 2.3% against the West German mark since Dec. 15. For the year, the dollar is off 22% against the yen and 17% against the mark.</br></br>People "can't ignore moves of this magnitude," Garrett R. Glass, vice president, First National Bank of Chicago, said. "No one can afford to stay home."