Fed tries to stem US$ slide

PUBLISHED : Wednesday, 28 April, 1993, 12:00am
UPDATED : Wednesday, 28 April, 1993, 12:00am

THE US Federal Reserve stepped in last night to support the dollar against the yen on the New York exchange market, according to European banking sources.

The Fed acted when the dollar dropped to 109.20 yen. The action lifted the dollar to 110.05 yen and it later steadied at 109.70 yen.

Gold, meanwhile, surged to an eight-month high of $353 an ounce on euphoria fuelled by a mining company deal between two of the world's leading financiers.

Other precious metals joined the rise as investors piled in on fears that falling interest rates and economic recovery would rekindle inflation. Silver hit a 10-month high of $4.1025 an ounce and platinum an eight-month peak of $378.

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