Federal Reserve Board Vice ChairmanManuel Johnson said the dollar has stabilized against other
currencies after action taken by the Fed.
    "We have taken the appropriate action and the dollar has
stabilized," Johnson said after testifying to a House Banking
subcommittee.
    He did not elaborate on the nature of the action nor when
it was taken, but said that it was in the spirit of the
agreement reached by six industrial nations in Paris recently.
    Johnson said the dollar's decline against other currencies
such as the Japanese yen has been gradual.
    Since the accord by the United States, Britain, West
Germany, Japan, France and Canada, foreign exchange markets
have been closely watching for indications of intervention by
central banks to determine the committment by those nations to
their agreement.
    The nations agreed that currency exchange rates were at
about the correct levels when the pact was signed earlier this
year.
 Reuter
