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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Goldbug23 who wrote (4405)	12/17/1997 7:07:00 PM
From: Bucky Katt	Respond to of 116753

The Federal Reserve Bank of New York declined to comment on market rumors that it may have sold Treasuries bills on behalf of the Bank of Japan on Wednesday. The New York Fed also declined comment on market speculation the Bank of Japan may have left orders with the Fed to intervene on its behalf to support the yen against the dollar during New York trading hours. ''The Federal Reserve does not comment on market rumors, as is its normal practice. The Federal Reserve never comments either on operations it conducts on behalf of other central banks,'' a senior New York Fed official said. The New York Fed is the U.S. agent for foreign central banks and international organizations such as the International Monetary Fund (IMF). The Bank of Japan heavily intervened in foreign exchange markets overnight to prop up the yen versus the dollar, the first such operation in more than five years. Market players estimated the size of the intervention at between $1 billion and $1.5 billion. The operation drove dollar/yen overnight from a high of 131.53 to a low of 125.80. Dollar/yen ended the New York session at 127.03/13 versus 126.70/80 at the open and 130.72/82 at the prior close. Separately, Treasury traders said the Fed was believed to have sold bills on behalf of the Bank of Japan around midday. Bill rates backed up at that time, with the three-month bill ending the day up four basis points to a discount rate of 5.11 percent. Selling dollar-denominated instruments such as Treasury bills would theoretically pressure the dollar lower against the yen.