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. Last Updated: 07/27/2016

Dollar Fall Necessitates Intervention

WASHINGTON -- The U.S. Federal Reserve, joined by the central banks of Germany, Japan and major European countries, intervened in foreign exchange markets Wednesday by buying dollars to support the U.S. currency, which plunged to seven-month lows Tuesday. Treasury Secretary Lloyd Bentsen said the Clinton administration was concerned about excessive foreign exchange volatility and was joining other countries in a bid to stabilize it. "This administration sees no advantage in an undervalued currency," Bentsen said. "The monetary authorities of the major countries are joining this morning in concerted intervention. These operations reflect our view that recent movements in exchange markets have gone beyond what is justified by economic fundamentals," he said.