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.