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TIME: Almanac 1990
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1990 Time Magazine Compact Almanac, The (1991)(Time).iso
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1990-09-18
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BUSINESS, Page 80Business NotesTHE DOLLARThis Time We Really Mean It
Since early this summer, the finance ministers of the seven
leading industrial countries have seemed almost powerless to tame
the surging U.S. dollar. They agreed the currency was too high and,
in the long run, threatened to aggravate the U.S. trade deficit.
But their desultory attempts to push down the greenback prompted
suspicion that the G-7 group had lost its clout. Last week the
finance ministers made a concerted effort to bring the dollar down
by intervening in the currency markets. The U.S. currency fell
nearly 5% against the yen and about 4% against the deutsche mark
by week's end.
Even so, some currency experts believe that the dollar will
rise again in the next six weeks to three months, since U.S.
interest rates remain relatively high compared with levels in Japan
and West Germany. The prime reason for high U.S. rates is the heavy
Government borrowing necessary for financing the budget deficit.