Replies to post #293138 on Zeev's Turnips Talk Politics (ZTTP)

[tinner]

This when Clinton was still trying to get over the mess old man Bush left him. Back when the dollar meant something. Ah, for the good old days! Back when we fought inflation and backed a strong dollar policy. Where is Snow when we need him???????????????????????? I forgot. Him and Yogi decided with their policies to trash it!
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Dollar Soars on Interest Rate Signals
By Alan Friedman and Lawrence MalkinPublished: WEDNESDAY, MAY 11, 1994
The dollar and U.S. Treasury bond prices rallied Tuesday as financial markets began to accept the U.S. administration's message that it would not use the American currency to force Japan into trade concessions and that the Federal Reserve Board meant business about raising interest rates to fight inflation and protect the dollar.

Less than one week after the Fed, the Bundesbank, and 15 other central banks spent an estimated $5 billion intervening in foreign exchange markets to prop up the ailing dollar, the U.S. currency surged against the yen and Deutsche mark amid expectations that the Fed would soon raise interest rates again and that the Bundesbank would reduce them.

The dollar ended New York trading at 1.6725 Deutsche marks, up from 1.6540 Monday, and at 104.415 yen, up from 102.850 yen. At these levels the dollar made up much of the ground it had lost over the past two weeks.

The benchmark 30-year U.S. Treasury bond rose 1 13/32 point, to 85 11/32, taking the yield down to 7.50 percent from 7.63 percent Monday. The Dow Jones industrial average and most other equity indexes also rose.

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But on Tuesday, overseas investors started buying Treasury bonds for their high yields. At the same time members of the U.S. administration lined up in an attempt to convince traders and investors that the United States has never wanted the dollar to weaken against the yen or any other currency.