Intervention Threat Boosts Dollar

The dollar rallied against most major currencies Thursday, amid speculation that central banks may intervene to support the U.S. currency.

The rebound followed a broad sell-off Wednesday that accompanied a volatile day of losses in U.S. stock and bond markets. On Thursday, American financial markets stabilized.

“The market was apprehensive to let the dollar go down,” said Kevin Lawrie, vice president of Mellon Bank in Pittsburgh.

In late New York trading, the dollar was quoted at 1.3808 German marks, up from 1.3758 late Wednesday. The dollar was also changing hands in New York at 88.20 yen, up from 87.33 late Tuesday.

Exchange Currency in Dollars Dollar in foreign currency Canada .7339 1.3625 France .2079 4.8105 Germany .7225 1.3840 Great Britain 1.5945 .6272 Italy .000621 1610.60 Japan .011356 88.06 Mexico .163132 6.1300