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

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