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To: John Madarasz who wrote (13593)	9/14/2001 12:41:52 PM
From: UnBelievable	Respond to of 209892

DJ Dlr Falls As Informal Agreement Fades, Reality Bites 09/14/2001 Dow Jones News Services (Copyright © 2001 Dow Jones & Company, Inc.) NEW YORK (Dow Jones)--After support earlier this week from an informal agreement in foreign exchange markets not to take advantage of major terrorist attacks on the U.S, the dollar succumbed Friday to bleak reality. In the wake of Tuesday's events, the dollar had demonstrated a remarkable degree of resilience, barely moving against its major counterparts on the day after the attacks. Much of this was due to what some analysts dubbed a "gentleman's agreement" not to profit from a terrible situation. But as more volume and turnover returned to currency markets, fears about the tremendous impact the attacks could have on the U.S. and global economies have combined to push the dollar sharply lower against the yen and to six-month lows against the euro. According to analysts, this is now prompting the return of speculators to the market. "Up until today, it seemed like people were holding fire," said one London-based currency strategist who asked not to be named. "Now, I'm hearing talk of hedge funds genuinely out there trading this thing, with at least some sort of preparation for what's going to happen on Monday," when U.S. equity markets open. The dollar fell through a key support level against the yen in early New York trade Friday, sliding at one point to Y116.96, before recovering to around Y117.44, its lowest level since March 2. The dollar also hit a six-month low against the euro at $0.9246, before recovering to hover around the 92 cent level. Analysts say that despite the desperate shock in the global financial community, currency trading will inevitably pick up and money managers must begin to price in some of the impact the attacks will have on global capital flows, economic growth and investor confidence. Market watchers also fear that major moves in currencies - such as Friday's sharp spike in dollar/yen - will ultimately force traders to readjust positions. "There are definitely some speculators back in the market," said Tim Mazanec, senior foreign exchange analyst at Investors Bank & Trust in Boston. "You just can't ignore these kind of levels."