Intervention Fears Boost Dollar

The dollar rallied against most major currencies Wednesday amid speculation that the Federal Reserve would enter the foreign-exchange market to buy dollars.

Fears of the Fed intervention came after the Bank of Japan bought an estimated $1 billion during Asian trading, before the open of U.S. markets, pushing the U.S. currency above 99 yen. Many traders expected the Fed to come into the market on the heels of the Bank of Japan action.

In late New York trading, the dollar was quoted at 98.83 Japanese yen, up sharply from 97.50 late Tuesday. Earlier in Tokyo, the dollar rose as high as 99.15 yen, its highest level since Feb. 8, before giving up some of its gains.

Exchange Currency in Dollars Dollar in foreign currency

Canada .7473 1.3381

France .1966 5.0860

Germany .6768 1.4775

Great Britain 1.5500 .6452

Italy .000617 1622.00

Japan .010127 98.75

Mexico .159808 6.2575