of GDP from an estimated 3.9% in 1987, reduce government spending by 1% in 1988 and keep interest rates low. Impact The US dollar continued to weaken in 1987 against the Deutsche Mark and other major currencies, reaching a low of 1.57 marks per dollar and 121 yen per dollar in early 1988. The dollar then strengthened over the next 18 months, reaching over 2.04 marks per dollar and 160 yen per dollar, in tandem with the Federal Reserve raising interest rates aggressively, from 6.50% to 9.75%. References Financial history of the United States G7 summits Foreign exchange market History of international trade Monetary policy 1987 in France