European Stars And Stripes (Newspaper) - December 30, 1987, Darmstadt, Hesse                                Wednesday decay bars 1987 the stars and stripes page3 Buck has t hit Bottom experts say from Page 1 begin importing inflation is they can linux h p i in Lier prices for he minn.1i nov non  Tucich and other Hanki it agree thai the . Plan for reducing is Trade de ii ii in in can itally. Hoping thai a cheaper Lullar would make . Grinds More attractive in a Vern Merki it was largely a failure. The Buck has Lom More than half of its value a gait most european cum-ncii1 in inc Las two years hut inc Trade deficit remains pegged at record Levels. Other strategies worked out during meetings of the seven leading industrialized nations in Paris in february and Al inc economic Seminin in Venice last june also have failed to have much of an effect on the Trade imbalance the experts note. Sure the lower Dollar has hurl some one German businessman said. Porsche has had 1o Lay off some workers and raise inc Price of their autos by $i.ouq. But really people who buy porsche Aren t worried about another 11.000." others note thai Horn has tired of its role As the economic locomotive that would pull . Trade Hack into inc Black. Germany has done what it can to Spur Domestic spending a Frankfurt currency trader said. We can t Cut interest Rales any further you have to charge something to tend Dumcy. The Trade deficit will be Bpck in America s court in 1988." the Impact of the Trade imbalance notwithstanding. It is America s Federal deficit hat is most Likely to spook currency traders and continue to drive inc Dollar downward in the coming year. Military spending which has evolved As a barome Ter of . Determination for getting the deficit under control will have to be Cut if the Dollar is to rebound in 1988, traders said. The Market wants that As a sign one said. Others noted that while recent cuts in military spend ing offered by the White House arc Welcome they Are not enough to have any immediate Impact on inc deficit. Additionally j33 billion in cuts outlined in inc proposed 1989 budget have not yet passed Congress. And. An economist who follows defense spending noted the Pentagon is already complaining about How the Reagan defense buildup is being  political play distinguished in 1987 by he Reagan administration policy of talking Down the Dollar is sure to continue in 1988, Bui in a new form International currency markets can be expected to closely Fol Low the . Presidential race which kicks off with he Iowa caucuses in february. The election of vice president George Bush which is favored by Many of the currency traders and Bankers interviewed for this article would have a positive effect on the Buck a Democrat in the White House would tend to weaken the Dollar overseas they say Al least initially. Most of us know Bush from his visits Here but few europeans and 1 understand this is also True of the american people know much about the democratic candidates said the Bank of Boston s Tucich. Therefore if Bush docs Well in would ten d to strengthen the  whatever the outcome of the race for the presidency Tucich and others who Trade the Dollar overseas Hope for less government involvement in the Market in 1988. The problem is thai government people say too much and the experts Don t say enough one banker said. We need to hear More from the Federal Reserve and the Bundesbank. The politicians should shut their Mouths. Of course he added they re not very Likely to do  another trader predicted we have a political Dol Lar thai will go As Low As the . Government wants in to go. And remember Here Are some theories around thai say 1.20 Marks to the Dollar is  adding weight o the argument of a political Dollar is the uniformity with which he Dollar has fallen against most european currencies since 1985. Com pared to a 54 percent decline in Germany and the Netherlands the Buck has slipped 50 percent in Bel Gium 45 percent in Italy 4 percent in England and 42 percent in Spain. The Dollar has remained steady against the greek drachma and More than doubled against inc turkish lira since i9ss. However much of the Dollar s gain in Turkey has been offset by inflation in addition to significant Price hikes that have gone into effect since National elections in november. Any Hope for the Dollar s recovery in the coming year rests in America moving beyond the Quick fix schemes thai distinguished 987, traders said. There Musl be a return 10 a reliable Exchange rate said Wolfgang Baumannn director of economics at inc German federation of Industry in Cologne. And that requires a reliable monetary policy beyond thai Many traders believe it is a simple matter of Trust. Can we believe they will get he deficit under control asked a German banker. I personally Trust America to do Someth i no about i to deficit. But Many of my trading partners Are not so sure. A lol of them ask How America can Ever pay Back hat kind of  but another argued he Market has to believe that America will be Able to repay ils debts. The consequences of not believing arc too unpleasant he said. Chart for Dollar Mark conversion Koftan into Mark j so 1,00 2.00 3.00 4.00 5.00 10.00 25.00 1.50 1.51 1.52 1.53 1.54 1.55 1.56 1.57 1.58 1.59 1.60 1.61 1.62 1.63 1.g4 1.65 1.66 1.67 1.56 1,69 1.70 0.75 076 0.76 0.77 0.77 1.50 151 1.52 1.53 1.54 300 3.02 3.04 3.06 3.08 450 4.53 4.56 4.59 4.62 600 6.04 6, 6.12 6.16 750 7.5s 7.60 7.65 7.70 15.00 15,10 1520 1530 15.40 3760 37.75 3800 3825 38.50 50.00 7500 75,50 76.00 7650 77.00 75.00 112.50 113,25 114.00 114,75 115.50 $100,00 150.00 151.00 15200 153,00 15400 0,78 1.55 3.10 465 6.20 7.75 1550 38,75 77.50 116,25 155.00 0.7b 1.56 3.12 4.66 6.24 7.80 15.60 39.00 78.00 117.00 156.00 0.79 1.57 3.14 4.71 6.2s 7.85 15.70 39.25 78-50 117.76 157.00 0.79 1.58 3,16 4 74 6.32 7,90  39,50 7900 11850 158,00 0.80 1,59 3,18 4,77 6.38 7.9s 1590 39,75 79.50 11925 15900 0.80 1.60 3.20 4.80 6.40 8.00 16.00 40.00 80.00 120.00 160.00  1.61 3.22 4.83 6.44 8.05 16.10 40.25 80.50 120.75 161.00 0.81 1.62 3.24 486 6.48 8.10 16.20 40,50 81 00 121 50 162,00 0.82 1.63 3.26 4.89 6.52 8.15 16.30 40.75 b1.50 122.25 16300 062 1 64 328 4.92 6.58 820 16.40 41 00 8200 12300 16400 d.s3 1.65 3.30 4.95 6.60 8.25 16.50 41.25 82.so 123.75 165.00 0.83 1.66 3.32 4.s8 664 8.30 1660 41 50 83.00 124,50 16600 0.84 1.67 3.34 5.01 6.68 8,35 16.70 41.75 83.50 125.25 167.00 0.84 1.68 3.36 5.04 6.72 8.40 16.80 42.00 84.00 126.00 168.00 0.85 1.89 3.38 5.07 6.76 8.45 1690 4225 84.50 126.75 16900 0.65 1.70 3.40 s.10 6.80 6.50 17.00 42.50 85.00 127.50 170.00 Maici into Dollan 1.50 1.51 1.52 1.53 1.54 1.55 1.56 1.57 1.58 1.59 1.60 1.61 1.62 1.63 1.64 1,65 1.66 1.67 1.6b 1.69 1.70 1,00 do. 2.00 do. 3.00 pm 4.00 do 5.00 do. 10.00 do. 25.00 do 50.00 do 75.00dm100.00 do 200.00 do. 0.67 1.33 200 2.67 3.33 6.67 1667 3333 50 00 6667. 13332 0.66 1 32 1.99 2.65 3.31 662 1656 3311 4967 ?623 13245 545 s 066 1 32 1.97 263 329 658 1645 3289 4934 65.79 131.sb 0.65 1.31 1.96 261 327 654 16.34 32 68 4902 6536 13072 0,65 1,30 195 2 go 325 6,49 1623 3247 4870 6494 12987 0.65 1.29 194 258 323 645 16 13 3226 4639 64.52 12903 0.64 1 28 1 92 256 321 641 1603 3205 4303 64 10 12621 064 1.27 191 2,55 3 18 637 1592 31 85 47.77 63.69 127.39 0.63 1.27 1.90 253 116 633 1662 31 4747 6329 12659 063 1.26 1 89 252 3 14 629 1572 31.45 47 17 6289 125.79 063 1 25 188 250 313 625 1563 31 25 4638 6250 12500 062 1.24 1 86 248 3 ii 6.21 1553 31 06 46.56 62 11 12422 0.62 1.23 165 247 309 617 1543 30 66 4630 61,73 12346 061 1 23 1 84 245 307 6 13 1534 3067 j60i 61 35 12270 0.61 1 22 1 63 244 305 510 1524 3049 4573 60 98 121 95 061 1.21 182 242 3.03 606 1515 3030 4545 6061 121 21 0.60 1 2d 181 241 301 602 1506 30 12 45 18 go 24 120 46 060 1 20 1 80 2.40 299 593 1497 2994 4491 5996 11976 060 1 19 1 79 236 298 59s 14 s8 2976 44 s4 5952 11905 059 1 is 1,78 237 296 592 1479 2959 44 m 5917 11834 059 1.18 1.76 2.35 294 see 14 7t 2941 44.12 5382 11765