Frankfurt / Tokyo, 06/11/2000 (Agence Europe) - On Monday, the European Central Bank again intervened on the exchange market in order to support the euro, after having done so twice before, on Friday last, but without a lasting impact on the value of the European currency (see EUROPE of 4 November, p.5). According to foreign exchange brokers, Friday's intervention was between 1 and 1.5 billion euros.
"We can confirm we are intervening in the market again. It is in line with our November 3 statement and Group of Seven communique from September", said an ECB spokesperson (the declaration last Friday gave as the reason for such intervention the bank's concern for external and internal repercussions of the euro's rate of exchange, as well as its impact on price stability). The spokesperson told AFP that the intervention occurred towards 9 a.m. and confirmed that the intervention had been unilateral (like that of last Friday). The Federal Reserve and the Central Bank of Japan were simply informed. Monday's intervention caused a slight rise in the euro, to $0.8731, followed by a fall to $0.8694.
In Japan, Haruhiko Kuroda, Vice Finance Minister for international affairs, commented: "We will continue to monitor currency markets carefully and cooperate depending on conditions".