The US$ fell against the mark and other European currencies yesterday as doubts grew that a major initiative package to help the ailing currency would emerge from this weekend's Group of Seven summit in Naples.
The US$'s drop to successive post-Second World War lows against the Japanese yen and its sharp fall against the German mark had prompted talk about such a package.
Co-ordinated monetary policy - which might include a hike in short-term American interest rates along with rate cuts in Germany and Japan - were among the measures many traders were expecting. The summit starts July 8.
The likelihood of co-ordinated action was called into question Monday after Gert Haller, German Chancellor Helmut Kohl's personal adviser on G-7 affairs, suggested the US$'s drop versus the yen was a more serious problem than its fall against European currencies. "I have not understood the recent excitement about the US$ and the European currencies," he said.
Late in New York, the US$ ended at 1.5826 marks, down from 1.5970 marks late Friday. Earlier in London, the US$ closed at 1.5845 marks, down from 1.5963 marks Monday.
The US$ was also quoted at 98.88 yen, marginally higher than 98.75 yen late Friday. Earlier in Tokyo, the US$ had closed at 99.50 yen. U.S. financial markets and commercial banks were closed Monday.
The British pound rose in New York to US$1.5435 from US$1.5382 late Friday.
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