US Dollar Plummets Against Major Currencies, Prompts Coordinated Intervention.
In May-June 1994, the US dollar decreased in value against the German mark and Japanese yen. The Federal Reserve Bank of New York intervened twice to support the dollar by purchasing large amounts of dollars. This intervention was part of a coordinated effort with other central banks to stabilize the currency markets. The US government believed that recent currency movements were not based on economic fundamentals and took action to address this issue.