CBS Evening News - 1988-01-04
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Read a transcript preview of “CBS Evening News - 1988-01-04” from malgent, uploaded on 2026-01-16.
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Language: English (YouTube automatic captions)
[0:02] [music]
[0:03] This is the CBS Evening News. Dan Rattle
[0:06] reporting. Good evening. The drooping
[0:08] dollar got a lift today on the first day
[0:10] of trading in the new year and that
[0:12] pushed stock prices way up on Wall
[0:14] Street. Still, the opening day rally did
[0:16] little to ease long range fears about
[0:18] where the world economy may be going.
[0:20] From London, Tom Fenton begins our
[0:22] coverage.
[0:24] When markets opened in Japan, the dollar
[0:26] plunged to an all-time low, dragging the
[0:28] Tokyo stock market down with it. But
[0:31] massive buying by the Bank of Japan
[0:33] reversed the dollar's fall. Other
[0:35] central banks began buying hundreds of
[0:37] millions of dollars. And by the time
[0:39] European markets opened, the dollar
[0:41] gradually lifted from its year-end lows.
[0:43] That touched off a stock market rally in
[0:45] London, where dealers had expected a bad
[0:47] day. The Financial Times index closed
[0:50] almost 35 points higher. There are
[0:53] reports that just before Christmas, the
[0:54] United States and other leading
[0:56] industrial nations reached a secret
[0:57] understanding to defend the dollar.
[0:59] According to these reports, they agreed
[1:01] on how far the dollar should be allowed
[1:03] to rise or fall against other major
[1:05] currencies. That would explain today's
[1:07] heavy intervention by central banks. The
[1:09] alarming year-end drop in the dollar is
[1:11] said to have triggered the agreement.
[1:13] The strategy worked because the banks
[1:15] made a coordinated move on a day when
[1:17] market trading was light, but many
[1:19] Europeans believe it won't work for
[1:21] long. I don't think she we should read
[1:23] too much at all into this rally. It
[1:24] lo