Treasury's Baker - G-7 Oppose Further dlr Drop

Treasury Secretary James Baker said the Group of Seven countries, in seeking to foster stability in exchange markets, believe a further decline in the value of the dollar would be counterproductive.

In answer to questions by a business group, Baker said that for one thing further reductions could make it economically difficult for the surplus countries to grow, thereby making it difficult for them to purchase overseas goods. In addition, Baker said he was opposed to the U.S. selling a yen denominated bond arguing that such a move might send the wrong signal to markets.