VOLCKER SEES DOLLAR AS FACTOR IN MONETARY POLICY

  Federal Reserve Board Chairman Paul
  Volcker said the performance of the dollar in exchange markets
  could be a factor in the U.S. central bank's decisions on
  monetary policy.
      "The performance of the dollar in the exchange market might
  become a factor bearing on our provision of reserves," Volcker
  said in testimony to the Senate Banking Committee.
      He said that fiscal policy changes in the United States,
  Germany and Japan would be more important that intervention to
  instill confidence in current exchange rate levels.
  

