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Armed Man Arrested by U.S. Secret Service

WASHINGTON (Reuters) - The U.S. Secret Service arrested a man armed with 10 rifles and six handguns in northwest Washington on Wednesday, ending a multi-state search for a suspect believed to be driving a car loaded with explosives.

A law enforcement official, speaking on condition of anonymity, said that contrary to the initial alert issued on Wednesday morning, there were no explosives in the unidentified man’s vehicle, though several firearms were uncovered.

“A preliminary search has revealed 10 rifles and six handguns. ... I can confirm there were no explosives found,” the official said.

News of the law enforcement alert caused jitters in New York’s financial markets days ahead of the first anniversary of the Sept. 11 attacks.

Currency traders blamed the news for modest selling of dollars in a foreign exchange market already on edge about the possibility of new violence a year after Sept. 11, or a U.S. invasion of Iraq.

“This news about a guy with explosives has caused some jitteriness in the market, bringing in some dollar sellers,” said a trader at a Japanese bank.

But the dollar ended higher on the day, boosted by rising stock prices and stronger-than-expected reports of auto sales.

Secret Service spokesman Marc Connolly said the individual was taken into custody in a northwest Washington neighborhood and a woman who was in the car was also taken into custody.

“That individual is now in custody and is being interviewed,” Connolly said.

Police in Philadelphia identified the suspect as 33-year-old Jeffrey Cloutier, described as a white man last seen driving a rented 2001 Chevrolet Cavalier with Pennsylvania license plates.

The Secret Service ( news - web sites) issued a bulletin on Cloutier to law enforcement agencies in Pennsylvania and surrounding states. Shortly before daybreak, Philadelphia police sent out a radio alert on Cloutier, who was wearing a white T-shirt and jeans.