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Euro soars on ECB move
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September 22, 2000: 3:28 p.m. ET
Central banks intervene to lift ailing single currency; Treasurys hold steady
By Staff Writer Jill Bebar
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NEW YORK (CNNfn) - The euro surged more than 4 percent against the dollar Friday after an unexpected move by the European Central Bank, which stepped in with other central banks to lift the battered currency.
Treasury securities ended little changed.
The joint central bank intervention represents the first coordinated intervention on behalf of a major currency since 1995. The euro rose as high as 90.30 cents after the U.S. Federal Reserve, the Bank of Japan and the ECB bought euros.
Also joining in the purchasing of the single currency were the Bank of England and the Bank of Canada.
The ECB cited concerns of the potential implications on the global economy as a result of current foreign exchange levels as its reason for intervening.
The action caught the market by surprise, occurring just a day ahead of a  Group of Seven (G-7) meeting of finance ministers and central bankers of the leading industrial nations in Prague, Czech Republic.
Analysts said the ECB accomplished its goal to stabilize the currency. "By bringing the risk of intervention to the market, it helped avoid a potential cascade for the euro," said Dave Solin, currency analyst at Foreign Exchange Analytics, a consulting firm.
In recent weeks, the euro has suffered a meltdown, setting a series of lifetime lows against the major currencies. On Wednesday it plunged against the dollar to a record low at 84.37 cents, a 28 percent loss since its launch in January 1999.
Shortly after 3 p.m. ET, the euro traded at 87.88 cents, up from 86.09 cents Thursday, a 2 percent loss in the dollar's value.
Meanwhile, the dollar rose sharply against the yen, trading at 108.07 yen from 106.64 yen Thursday.
Treasurys steady
Treasury prices were little changed Friday on the heels of the central bankers' intervention to boost the euro.
Analysts said the move was negative for bonds as some central banks may have to sell some of their Treasury holdings in order to buy euros.
But a sharp decline among U.S. technology stocks in the wake of a revenue  warning from chip maker Intel (INTC: Research, Estimates) provided support. Investors often flee a plunging stock market for the relative safety of government securities.
Shortly after 3 p.m. ET, the benchmark 10-year Treasury note fell 2/32 of a point in price to 99-10/32. The yield, which moves in the opposite direction to price, was unchanged from 5.83 percent Thursday.
The 30-year bond dipped 1/32 to 104-24/32; its yield was at 5.90 percent. 
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