LEAD: A bruising round of central bank intervention and an increase in interest rates in Europe stopped the dollar rally yesterday, but some traders said they still expected the dollar to move higher.

Fed Selling Ends Rally In Dollar

LEAD: Americans begin the Bush administration in a buoyant mood, optimistic about the country and the new President and especially satisfied with their own lives, according to the latest New York Times/CBS News Poll.

Optimistic Mood Greets 41st President

LEAD:  Figures are for 1988.  CHICAGO BOARD OF TRADE

COMMODITY HUBS

INSIDE

LEAD: If President Bush follows his plan to use the phrase ''thousand points of light'' in his address to those attending the inaugural balls Friday night, 40,000 points will shine.

For Bush, 40,000 Points of Maglites

LEAD: To meet its expanding needs, the New York City water-supply system will likely have to begin to take up to 300 million gallons of water a day from the Hudson River, a state report says. The report also says that Long Island will probably need to be connected to the city's system soon to prevent depletion of its ground-water acquifers.

Report Looks to Hudson for New York City's Water

LEAD: Poland's leaders today published the long-awaited text of the Communist Party resolution calling for talks leading to legalization of new unions, including Solidarity, which was banned more than six years ago.

Warsaw Issues A Call for Talks On New Unions

LEAD: McCaw Cellular Communications Inc., the nation's largest cellular telephone operator, and Affiliated Publications Inc., owner of The Boston Globe and specialty magazines, yesterday announced plans for separate but related financial transactions that change the structures of both companies.

McCaw, Boston Globe Owner Set Changes

LEAD: If Ronald Reagan represents the apotheosis of cowboy values, symbolizing the enduring American myths of self-help, self-sufficiency and self-confidence, George Bush embodies the patrician ideal of responsibility begotten by privilege: an equally American tradition reaching back through the many Presidents more at home in mansions than log cabins, from Washington of Mount Vernon to Jefferson of Monticello to Roosevelt of Hyde Park.

Bush Offering a Special Mix: Ivy League and Pork Rinds

LEAD: Prices rose three-tenths of 1 percent in December, contained by a sharp drop for gasoline. For 1988 prices rose 4.4 percent, the same as in 1987.

Retail Prices Up 0.3% for Month

BUSINESS DIGEST

LEAD: In the latest example of New York City's inability to track troubled families, a Bronx woman whose 10-month-old boy suffocated last week was supposed to be contacted by city caseworkers once a month but had not been visited since last April.

A Strained Welfare Unit, Another Child Dead

LEAD: WINGED horses, gilded eagles and an impressive gathering of Roman goddesses reign in Neo-Classical splendor among the urns, columns and obelisks spread throughout the Winter Antiques Show, opening today in previews and tomorrow to the public for a nine-day run at the Seventh Regiment Armory.

Neo-Classicism Sweeps Armory Show

LEAD: Timothy Grimes's life had been deeply troubled even before he was a victim of violence two years ago in Howard Beach, Queens. Since then his problems have worsened.

Life's Nightmare Continues For a Howard Beach Victim

LEAD: The General Electric Capital Corporation, a financial subsidiary of the General Electric Company, announced yesterday that Michael A. Carpenter, an executive vice president, had been named president and chief executive of its Kidder, Peabody Group.

G.E. Unit Executive Named As Kidder, Peabody Chief

LEAD: Richard G. Darman, the chief architect of President-elect George Bush's budget policies, told Congress today that the new administration opposed all measures the public might perceive as tax increases and would not disguise tax proposals in euphemistic terms.

BUSH AIDE INSISTS ON NO TAX RISES, EVEN IN DISGUISE

LEAD: Officials of Chicago's commodities exchanges acknowledged today that Federal investigators were looking into trading activities to determine whether investors had been defrauded.

F.B.I. SAID TO STUDY CHICAGO CHEATING IN FUTURES TRADES

LEAD: Homeowners don't know it, but they're about to have a new consumer need developed. The typical suburbanite thought he was doing great a few years ago when he got rid of the heavy venetian blinds with the fat slats and bought those skinny wonders, thin-slatted aluminum mini-blinds. Forget it. America does not stand still.

Our Towns; Pulling America To the Twistless, Droopless Blind

LEAD: Kohlberg, Kravis, Roberts & Company, the New York investment firm that recently won control of RJR Nabisco Inc. with a record $24.88 billion bid, said yesterday that it would sell Nabisco's South African operations.

Nabisco to Shed South Africa Units

LEAD: Senator Alphonse M. D'Amato will ask the Justice Department to name Otto G. Obermaier, a top defense lawyer in New York, to be the next United States Attorney in Manhattan, a spokeswoman for the Senator confirmed last night.

D'Amato Urges Defense Lawyer For U.S. Attorney

LEAD: Defense lawyers said yesterday that it was a jealous and deceitful Hedda Nussbaum who murdered Lisa Steinberg, not Joel B. Steinberg, who is accused of beating the 6-year-old child to death.

Steinberg Lawyers Say Nussbaum Killed Lisa

LEAD: YOU hear it immediately: the crystalline blend of the instruments, the effortless elegance of the musicians, the subtle shadings of the beat that are acknowledged on the bandstand by a sideways glance and a smile. It's the sound of musical empathy, the sound of a band that plays together regularly -one that's more than willing to produce extraordinary music on any bandstand at any time.

Joys of the Bank That Stays Together

LEAD: The seasoned but little-known people who will staff the White House know that the important word in a title like assistant to the President is assistant, not President. The last of five articles on the players in George Bush's Washington. Page A10.

Who's Who at 1600

LEAD: Children at a New York State psychiatric center near Buffalo operated a ''sex club'' in which younger patients were intimidated into performing sex acts, an investigation by a state watchdog agency has found. Several staff members at the center also engaged in sex with children, the agency said.

'Sex Club' Found at Mental Unit

LEAD: On the last full day of the Reagan Administration, the United States today revoked special trading privileges for $165 million worth of products from Thailand in retaliation against that country's refusal to grant copyright protection for American pharmaceuticals and software.

U.S. Revokes Privileges on Thai Goods

Nicholas Edward Foles is an American former professional football quarterback who played in the National Football League (NFL) for 11 seasons. A member of six teams, he achieved his greatest success with the Philadelphia Eagles, leading the franchise to their first Super Bowl title.

Nick Foles, American football player

Nick_Foles

Alex Grant is a Canadian professional ice hockey defenceman. He is currently an unrestricted free agent. He most recently played under contract with Barys Astana in the Kontinental Hockey League (KHL). Grant was selected by the Pittsburgh Penguins in the 4th round of the 2007 NHL Entry Draft.

Alex Grant, Canadian ice hockey player

Alex_Grant_(ice_hockey)

Jared Waerea-Hargreaves is a New Zealand professional rugby league footballer who plays as a prop for Hull KR in the Super League and New Zealand at international level.

Jared Waerea-Hargreaves, New Zealand rugby league player

Jared_Waerea-Hargreaves

Alamgir Kabir was a Bangladeshi film director and cultural activist. Three of his feature films are featured in the "Top 10 Bangladeshi Films" list by British Film Institute.

January 20, 1989

Headlines from January 20, 1989

Fed Selling Ends Rally In Dollar

Optimistic Mood Greets 41st President

COMMODITY HUBS

INSIDE

For Bush, 40,000 Points of Maglites

Billboard 200

Don't Be Cruel

Appetite For Destruction

Open Up And Say...Ahh!

New Jersey

Hysteria

Notable Births

Notable Deaths

Historical Context for January 20, 1989