NEW YORK - The dollar, hammered last week, teetered above 1.40 German marks, a key point, in midday currency trading Monday but was still below its opening price.
The further decline came despite the intervention by the Federal Reserve and other central banks, dealers said.
The dollar skidded as low as 1.3988 marks, and some technical traders expected a drift to as low as 1.35 to 1.38 marks, even with more interventions.
Bigger Drop Feared
"The concern is that if the dollar goes past 1.3980 [marks], it may really drop," said a Japanese bank trader.
The dollar stood at 1.4026 marks and 124.55 yen at midday, down from 1.4202 and 125.03 at the opening.
On Friday, the dollar had closed at 1.4285 marks and 125.78 yen despite several rounds of coordinated central bank intervention.
On Monday, as on Friday, the Fed declined to comment on the intervention. But several European central banks said they had joined to support the dollar Monday morning in Europe.
The Fed added cash to the banking system with $2 billion of customer repurchase agreements. Some economists had expected such a move and said the Fed's intervention to support the U.S. currency was a draining factor.