LONDON EURODOLLAR DEPOSITS CLOSE QUIETLY STEADY
Eurodollar deposit rates closed little
changed around the levels established at midmorning. Rates at
the longer end of the market showed 1/16 point gains on a weak
opening from the dollar, dealers said.
    Trading remained very quiet throughout the day with
operators sidelined in the absence of major U.S. Economic data
and ahead of this week's Group of Seven meeting in Washington.
The G-7 finance ministers are due to discuss their February
pact on currency stability and this could well have an impact.
    One to five month eurodollars were steady with three months
closing at 6-9/16 7/16 pct.
    Dealers noted that Federal Reserve Board Chairman Paul
Volcker said a restrictive monetary policy would hit investment
and that a better course would be to restrain spending. Volcker
was testifying to the Senate Banking Committee.
    Volcker also said a further fall in the dollar would be
counterproductive and that the currency's performance could be
a factor in determining U.S. Monetary policy.
    Short dated eurodollars were steady with overnight to
spot/next quoted at a uniform 6-1/4 1/8 pct. The Fed added
temporary reserves via two-day system repurchase agreements
with Fed funds trading at 6-1/8 pct.
 REUTER
