These and other changes in exchange rates in Europe led to an effective appreciation of the
German mark.
In this environment, two announcements by the Finnish authorities in mid-November, first, that the Finnish markka would float and, later, that it would be effectively devalued about 12 percent, heightened the sense of exchange rate risk and boosted the
German mark.
For the same reason, Bulgaria used the
German mark to anchor its currency and Mexico is contemplating tying its peso to the U.
Bank notes denominated in
German marks, French francs, and the like will cease to be legal tender on July 1, 2002.
The average amount of a
German mark purchase - $156 million equivalent - was larger than atypical sale of foreign exchange, but was not substantially different from the average purchase of yen.
Also on This Day: 1440: Eton College received itsfirst charter; 1878: The obelisk of Thothmes III, 'Cleopatra's needle', was erected on the Thames Embankment, London; 1923: As the
German mark collapsed, pounds 1 was equal to 600 million marks;1953: Senator John F Kennedy married Jacqueline Bouvier; 1960: MOTs for cars were introduced in the UK; 2001: Downing Street was evacuated and the highest security measures were taken in London following the September 11 terrorist attacks.
European currencies, mainly the
German mark, the French franc and the Swiss franc, account for around 20% of the total.
The pound hit a four-week low against the
German mark and a low for the week against the dollar, clear signs that the markets expect a cut.
The 30-year Treasury bond similarly rose nearly a full point, and the dollar fell against the Japanese yen and
German mark.
At the end of the quarter, the current values of the
German mark and Japanese yen reserve holdings totaled $17.
dollar versus the Japanese yen and
German mark makes American products more attractive abroad.
There has been, he said, a lot of "catastrophic reporting" that gave worry to many and affected the value of
German mark.
