YEUTTER SAYS DLR LEVEL BASED ON ECONOMIC POLICY
U.S. Trade Representative Clayton
Yeutter said that whether the exchange rate of the dollar would
fall or rise in the coming decade would depend on nations'
financial, monetary and tax policies.
    But, he said, in a speech and remarks to the Heritage
Foundation, that in the end "the marketplace will ultimately
rule the day."
    Asked about the future of the dollar, he said that whether
or not it would rise or fall depended on economic policies and
coooperation among trading nations.
    Yeutter said "if nations do the right kinds of things in
financial, monetary and tax policies, then a lesser burden of
adjustment is placed on exchange rates, and one could envision
a situation of the major trading nations moving back far closer
to what most of us would consider equilibrium and exchange
rates becoming relatively stable."
    But he said, on the other hand, that if nations did not
exhibit greater self discipline and international cooperation,
"It is simply inevitable that the exchange rates will make that
adjustment."
 Reuter
