U.S. TREASURY'S BAKER SEES RATE STABILITY
Treasury Secretary James Baker said
the agreement among the industrial countries reached in Paris
last month should foster stability of exchange rates at around
current levels.
    In testimony before the House Appropriations Committee,
Baker outlined many of the measures taken designed to achieve
more balanced growth and a reduction of trade imbalances during
the Paris meeting.
    "These measures should also foster greater stability of
exchange rates around current levels," he said.
    Baker reiterated that the ministers at the Paris meeting
agreed that their currencies were within ranges "broadly
consistent with underlying economic fundamentals and that
further substantial exchange rate shifts could damage growth
and adjustment prospects."
    He added: "In these circumstances, we agreed to cooperate
closely to foster stability of exchange rates around current
levels."
 Reuter
