And as the mark rises in value, the pressure on the dollar increases, because to buy marks traders must sell other currencies, including dollars.

Rather, he said, currency dealers concentrated on selling currencies that have appreciated recently to collect profits.

Their central banks will try to force it back by intervening - ganging up on the markets, buying and selling currencies.

The strength of the mark helped pull down the dollar as well, as traders sold currencies for marks.

European money managers may also have had trouble selling other currencies and buying dollars within seconds so as to avoid losses.

Yes, investors will still have the incentive to sell grossly overvalued currencies.

Forward market transaction is an agreement to buy or sell currencies for settlement at least three days later, at predetermined exchange rates.

Currency trading was hectic in Europe as the central banks bought and sold various currencies.

It will be entering into contracts to both buy and sell specific currencies on or between specific dates.

In that case, large traders, like portfolio managers and multinational corporations, might sell other currencies to buy dollars.