U.S. Market February 20 , 2001

The New York currency markets were quiet on Monday as US equity and future markets were closed for the President’s Day Holiday. The Post G-7 communique provided little incentive to dabble in the currency markets on Monday. The G-7 official statement expressed satisfaction in the current FOREX levels and again re-enforced that currencies should reflect their fundamentals. US officials tried to clarify its stand on the US Dollar. The US Treasury Secretary Paul O’Neil caused some confusion ahead of G-7 when a German article reported O’Neil expressing that the US was NOT following its strong Dollar policy. European officials noted that the US will AVOID talking the Dollar down in future references. European Central Bank council member Ernst Welteke said inflationary risks in the 12- nation euro-zone have waned but added that risks to price stability currently remain on the European front. The ECB has avoided the current round of lower global interest rates. Euro was dealing around the .9210 cents against the Dollar in late NY. The Euro tested an intra-day high of .9235 cents. Euro Yen cross around 106.85. Dollar Yen creeps above the 116 level. Sterling fell against the euro but rallied versus the dollar on Monday.

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