FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                 (X) QUARTERLY REPORT UNDER SECTION 13 or 15(d)

                     OF THE SECURITIES EXCHANGE ACT OF 1934

               OR ( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d)

                     OF THE SECURITIES EXCHANGE ACT OF 1934


For the Quarter ended March 31, 1998

Commission File Number 0-21588


      SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
      (Exact name of registrant as specified in its charter)


        New York                                            13-3616914
(State or other jurisdiction of                          (I.R.S. Employer
 incorporation or organization)                          Identification No.)


                c/o Smith Barney Futures Management Inc.
                     390 Greenwich St. - 1st. Fl.
                     New York, New York  10013
           (Address and Zip Code of principal executive offices)


                       (212) 723-5424
            (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.
                                                     Yes X No


<PAGE>



                          SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
                                                  FORM 10-Q
                                                    INDEX

                                                                        Page
                                                                       Number


PART I - Financial Information:

           Item 1. Financial Statements:

                   Statement of Financial Condition at
                   March 31, 1998 and December 31, 1997                  3

                   Statement of Income and Expenses and
                   Partners' Capital for the Three Months
                   ended March 31, 1998 and 1997                        4

                   Notes to Financial Statements                    5   -    8

           Item 2. Management's Discussion and Analysis
                   of Financial Condition and Results of
                   Operations                                       9   -   10

PART II - Other Information                                         11  -   12



                                                         2

<PAGE>



                                     PART I

                          Item 1. Financial Statements


             SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
                        STATEMENT OF FINANCIAL CONDITION



<TABLE>
<CAPTION>
                                                       MARCH 31,    DECEMBER 31,
                                                         1998          1997
                                                      -----------    -----------
                                                       Unaudited)
ASSETS:
<S>                                                        <C>           <C>
Equity in commodity futures trading account:
  Cash and cash equivalents                            $3,319,517     $3,143,740

  Net unrealized appreciation
    on open futures contracts                             326,465        462,188


                                                       ----------     ----------

                                                        3,645,982      3,605,928

Interest receivable                                        12,251         11,501

                                                       ----------     ----------

                                                       $3,658,233     $3,617,429

                                                       ==========     ==========


LIABILITIES AND PARTNERS' CAPITAL:

Liabilities:

 Accrued expenses:
  Commissions                                          $   21,205     $   21,027
  Incentive fees                                           13,983         54,882
  Other                                                    22,935         27,954
 Redemptions payable                                       70,775         19,439
 Commodity options written, at market value
 (premiums received $16,800 in 1997)                         --           12,775
                                                       ----------     ----------

                                                          128,898        136,077
Partners' Capital:
General Partner, 8,000.2096 Unit equivalents
  outstanding in 1998 and 1997                            112,723        108,162
Limited Partners, 242,437.0888 and
  249,401.2878 Units of Limited Partnership
  Interest outstanding in 1998 and 1997,
  respectively                                          3,416,612      3,373,190
                                                       ----------     ----------

                                                        3,529,335      3,481,352

                                                       ----------     ----------

                                                       $3,658,233     $3,617,429

                                                       ==========     ==========
</TABLE>

See Notes to Financial Statements.
                                                  3


<PAGE>



             SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
             STATEMENT OF INCOME AND EXPENSES AND PARTNERS' CAPITAL
                                   (UNAUDITED)



<TABLE>
<CAPTION>
                                                        THREE MONTHS ENDED
                                                            MARCH 31, 
                                                      -------------------------
                                                           1998          1997

                                                     ------------   ------------
<S>                                                       <C>           <C>
 Income:
  Net gains  on trading of commodity
   futures:
  Realized gains  on closed positions                $   337,067    $   303,094
  Change in unrealized gains/losses on open
   positions                                            (139,748)       (36,371)

                                                     -----------    -----------

                                                         197,319        266,723
Less, brokerage commissions and clearing fees
  ($5 and $0, respectively)                              (63,739)       (63,768)

                                                     -----------    -----------

  Net realized and unrealized gains                      133,580        202,955
  Interest income                                         35,387         36,196

                                                     -----------    -----------

                                                         168,967        239,151

                                                     -----------    -----------


Expenses:
  Incentive fees                                          13,983         46,586
  Other                                                    9,380         13,358

                                                     -----------    -----------

                                                          23,363         59,944

                                                     -----------    -----------

  Net income                                             145,604        179,207
  Redemptions                                            (97,621)       (92,365)

                                                     -----------    -----------

  Net increase  in Partners' capital                      47,983         86,842

Partners' capital, beginning of period                 3,481,352      3,358,976

                                                     -----------    -----------

Partners' capital, end of period                     $ 3,529,335    $ 3,445,818
                                                     ===========    ===========

Net asset value per Unit
  (250,437.2984 and 286,749.3628 Units outstanding
  at March 31, 1998 and 1997, respectively)          $     14.09    $     12.02
                                                     ===========    ===========


Net income  per Unit of Limited Partnership
  Interest and General Partner Unit equivalent       $      0.57    $      0.61
                                                     ===========    ===========
</TABLE>


                                                             4 
<PAGE>




             SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 1998
                                   (Unaudited)

1. General:

           Smith  Barney   International   Advisors  Currency  Fund  L.P.,  (the
"Partnership")  is a limited  partnership  which was  organized  on May 29, 1991
under the partnership laws of the State of New York to engage in the speculative
trading of a diversified  portfolio of commodity  interests,  including  futures
contracts,  options and forward  contracts.  The  commodity  interests  that are
traded by the Partnership are volatile and involve a high degree of market risk.
The Partnership commenced trading operations on March 12, 1992.

     Smith  Barney  Futures  Management  Inc.  acts as the general  partner (the
"General Partner") of the Partnership. Smith Barney Inc. ("SB"), an affiliate of
the General Partner,  acts as commodity broker for the Partnership.  All trading
decisions for the  Partnership are made by Friedberg  Commodity  Management Inc.
and Trendview Capital Management (collectively, the "Advisors").

           The  accompanying  financial  statements  are  unaudited  but, in the
opinion  of  management,  include  all  adjustments  (consisting  only of normal
recurring  adjustments)  necessary for a fair  presentation of the Partnership's
financial  condition at March 31, 1998 and the results of its operations for the
three months ended March 31, 1998 and 1997. These financial  statements  present
the  results of interim  periods and do not  include  all  disclosures  normally
provided in annual  financial  statements.  It is suggested that these financial
statements  be read in  conjunction  with the  financial  statements  and  notes
included  in the  Partnership's  annual  report  on Form  10-K  filed  with  the
Securities and Exchange Commission for the year ended December 31, 1997.

           Due to the nature of commodity trading, the results of operations for
the interim periods presented should not be considered indicative of the results
that may be expected for the entire year.


                                                         5

<PAGE>



             Smith Barney International Advisors Currency Fund L.P.
                          Notes to Financial Statements
                                 March 31, 1998
                                   (Continued)

2.         Net Asset Value Per Unit:

  Changes in net asset value per Unit for the three  months ended March 31, 1998
and 1997 were as follows:

                                                       THREE-MONTHS ENDED
                                                           MARCH 31,
                                                      -------------------
                                              1998                       1997
                                            ------------               --------

Net realized and unrealized
 gains                                       $ 0.52                     $ 0.68
Interest income                                0.14                       0.12
Expenses                                      (0.09)                     (0.19)
                                             -------                    -------

Increase for period                            0.57                       0.61

Net Asset Value per Unit,
  beginning of period                         13.52                      11.41
                                             -------                    ------

Net Asset Value per Unit,
  end of period                              $14.09                     $12.02
                                             =======                    ======

3. Trading Activities:

         The  Partnership  was formed for the purpose of trading  contracts in a
variety of commodity interests,  including derivative financial  instruments and
derivative  commodity  instruments.  The  results of the  Partnership's  trading
activity are shown in the statement of income and expenses.

         The  Customer  Agreement  between  the  Partnership  and SB  gives  the
Partnership the legal right to net unrealized gains and losses.

         All of the commodity  interests  owned by the  Partnership are held for
trading purposes. The fair value of these commodity interests, including options
thereon,  at March 31, 1998 and 1997 was $326,465 and  $(69,677),  respectively,
and the average fair value during the three months then ended,  based on monthly
calculation, was $303,018 and $173,308, respectively.

4. Financial Instrument Risk:

         The  Partnership  is party to financial  instruments  with off- balance
sheet risk, including derivative financial  instruments and derivative commodity
instruments,  in the normal course of its business.  These financial instruments
include forwards,  futures and options,  whose value is based upon an underlying
asset, index,

                                                         6

<PAGE>



or reference  rate,  and  generally  represent  future  commitments  to exchange
currencies or cash flows,  to purchase or sell other  financial  instruments  at
specific  terms  at  specified  future  dates,  or,  in the  case of  derivative
commodity instruments, to have a reasonable possibility to be settled in cash or
with  another  financial  instrument.  These  instruments  may be  traded  on an
exchange  or   over-the-counter   ("OTC").   Exchange  traded   instruments  are
standardized and include futures and certain option contracts. OTC contracts are
negotiated between contracting parties and include forwards and certain options.
Each of these  instruments  is subject to various risks similar to those related
to the underlying  financial  instruments  including  market and credit risk. In
general,  the  risks  associated  with OTC  contracts  are  greater  than  those
associated  with  exchange  traded  instruments  because of the greater  risk of
default by the counterparty to an OTC contract.

         Market risk is the  potential for changes in the value of the financial
instruments traded by the Partnership due to market changes,  including interest
and foreign  exchange rate movements and  fluctuations  in commodity or security
prices.  Market risk is directly impacted by the volatility and liquidity in the
markets in which the related underlying assets are traded.

         Credit risk is the possibility that a loss may occur due to the failure
of a counterparty to perform  according to the terms of a contract.  Credit risk
with  respect to exchange  traded  instruments  is reduced to the extent that an
exchange or clearing  organization  acts as a counterparty to the  transactions.
The Partnership's risk of loss in the event of counterparty default is typically
limited to the amounts  recognized in the  statement of financial  condition and
not  represented  by the contract or notional  amounts of the  instruments.  The
Partnership has concentration  risk because the sole counterparty or broker with
respect to the Partnership's assets is SB.

         The Partnership  engages in the trading of forward contracts in foreign
currencies.  In  this  connection,  the  Partnership  contracts  with  SB as the
counterparty  to take future  delivery of a particular  foreign  currency.  In a
forward transaction,  cash settlement does not occur until the agreed upon value
date  of  the  transaction.  The  Partnership's  credit  risk  in the  event  of
counterparty  default is  typically  limited to the  amounts  recognized  in the
statement of financial condition and not represented by the contract or notional
amounts of the instruments.

         The General  Partner  monitors  and  controls  the  Partnership's  risk
exposure  on a  daily  basis  through  financial,  credit  and  risk  management
monitoring systems and,  accordingly  believes that it has effective  procedures
for evaluating and limiting the credit and market risks to which the Partnership
is subject. These monitoring

                                                         7

<PAGE>



systems  allow the  General  Partner to  statistically  analyze  actual  trading
results with risk adjusted performance indicators and correlation statistics. In
addition,  on-line  monitoring  systems  provide  account  analysis  of futures,
forwards and options  positions by sector,  margin  requirements,  gain and loss
transactions and collateral positions.

         The notional or  contractual  amounts of these  instruments,  while not
recorded in the financial  statements,  reflect the extent of the  Partnership's
involvement in these instruments. At March 31, 1998, the notional or contractual
amounts of the  Partnership's  commitment to purchase and sell these instruments
was $11,342,663 and $20,487,404,  respectively,  as detailed below. All of these
instruments mature within one year of March 31, 1998. However, due to the nature
of the Partnership's business, these instruments may not be held to maturity. At
March 31,  1998,  the fair  value of the  Partnership's  derivatives,  including
options thereon, was $326,465, as detailed below.

                                 MARCH 31, 1998
                            NOTIONAL OR CONTRACTUAL
                             AMOUNT OF COMMITMENTS
                              TO PURCHASE       TO SELL              FAIR VALUE

Currencies - OTC Contracts    $11,342,663     $20,487,404              $326,465
                              ===========     ===========              ========

         At  March  31,  1997,  the  notional  or  contractual  amounts  of  the
Partnership's  commitment to purchase and sell these  instruments was $8,643,896
and  $10,282,811,   respectively,  and  the  fair  value  of  the  Partnership's
derivatives, including options thereon, was $(69,677) as detailed below.

                                 MARCH 31, 1997
                             NOTIONAL OR CONTRACTUAL
                              AMOUNT OF COMMITMENTS
                            TO PURCHASE         TO SELL              FAIR VALUE

Currencies - OTC Contracts   $8,643,896       $10,282,811             $(69,677)
                             ==========       ===========             =========


                                                          8

<PAGE>



Item 2.          Management's Discussion and Analysis of Financial Condition
                 and Results of Operations

Liquidity and Capital Resources

         The Partnership  does not engage in the sale of goods or services.  Its
only assets are its equity in its commodity futures trading account,  consisting
of cash and cash equivalents, net unrealized appreciation (depreciation) on open
futures and forward contracts and interest receivable. Because of the low margin
deposits normally required in commodity futures trading,  relatively small price
movements may result in substantial losses to the Partnership. While substantial
losses  could lead to a decrease in  liquidity,  no such losses  occurred in the
first quarter of 1998.

         The Partnership's  capital consists of the capital contributions of the
partners as  increased  or  decreased  by gains or losses on  commodity  futures
trading,  expenses,  interest  income,  redemptions  and  additions of Units and
distributions of profits, if any.

         For  the  three  months  ended  March  31,  1998,  Partnership  capital
increased 1.4% from $3,481,352 to $3,529,335.  This increase was attributable to
net  income  from  operations  of  $145,604  which was  partially  offset by the
redemption of 6,964.1990 Units totaling $97,621 for the three months ended March
31,  1998.  Future  redemptions  can impact the  amount of funds  available  for
investments in commodity contract positions in subsequent periods.

Results of Operations

         During the Partnership's first quarter of 1998, the net asset value per
Unit increased 4.2% from $13.52 to $14.09, as compared to an increase of 5.3% in
the first quarter of 1997. The Partnership experienced a net trading gain before
commissions  and expenses in the first quarter of 1998 of $197,319.  These gains
were  recognized  in the  trading of Swiss  Francs,  Greek  Drachma,  Thai Baht,
Indonesian  Rupia and Malaysian  Ringgit and were partially  offset by losses in
Japanese  Yen,  New  Zealand  Dollar  and  Brazilian  Cruzado.  The  Partnership
experienced  a net trading  gain before  commissions  and  expenses in the first
quarter of 1997 of  $266,723.  These  gains  were  primarily  recognized  in the
trading of Japanese Yen and Italian Lira and were partially  offset by losses in
Pound Sterling and Swiss Francs.

         Commodity futures markets are highly volatile. Broad price fluctuations
and rapid inflation increase the risks involved in commodity  trading,  but also
increase the possibility of profit. The profitability of the Partnership depends
on the  existence  of major  price  trends and the  ability of the  Advisors  to
identify  correctly  those price trends.  Price trends are  influenced by, among
other things, changing supply and demand relationships, weather,

                                                          9

<PAGE>



governmental, agricultural, commercial and trade programs and policies, national
and  international  political and economic events and changes in interest rates.
To the extent that market  trends  exist and the  Advisors  are able to identify
them, the Partnership expects to increase capital through operations.

         Interest income on 85% of the Partnership's  daily equity maintained in
cash was  earned at the  monthly  average  13-week  U.S.  Treasury  Bill  yield.
Interest  income for the three months ended March 31, 1998  decreased by $809 as
compared to the corresponding  period in 1997. This decrease is primarily due to
the effect of redemptions on the  Partnership's  equity maintained in cash which
was  partially  offset by an increase in interest  rates during the three months
ended March 31, 1998 as compared to 1997.

         Brokerage commissions are calculated on the adjusted net asset value on
the last day of each month and, therefore, vary according to trading performance
and  redemptions.  Accordingly,  they  must  be  compared  in  relation  to  the
fluctuations in the monthly net asset values.  Commissions and clearing fees for
the three  months  ended  March 31,  1998  decreased  by $29 as  compared to the
corresponding period in 1997.

         Incentive fees are based on the new trading  profits  generated by each
Advisor as defined in the  advisory  agreements  between  the  Partnership,  the
General Partner and each Advisor. Trading performance for the three months ended
March 31, 1998 and 1997  resulted  in  incentive  fees of $13,983  and  $46,586,
respectively.

                                                          10

<PAGE>



                                               PART II OTHER INFORMATION

Item 1. Legal Proceedings

                   Between    May 1994 and the present,  Salomon  Brothers Inc.
                   ("SBI"), SB and The Robinson  Humphrey Company, Inc.("R- H"),
                   all  currently  subsidiaries of Salomon Smith Barney Holdings
                   Inc. ("SSBHI"),  along with a number of other broker-dealers,
                   were  named  as  defendants in approximately 25 federal court
                   lawsuits  and two state court lawsuits,  principally alleging
                   that companies that make  markets in  securities  traded  on 
                   NASDAQ   violated  the  federal antitrust  laws by conspiring
                   to maintain a minimum  spread of $.25 between  the  bid   and
                   asked price for certain securities. The federal  lawsuits and
                   one  state  court  case  were  consolidated   for   pre-trial
                   purposes   in the Southern  District  of New York in the fall
                   of    1994 under the caption In re NASDAQ Market-Makers Anti-
                   trust   Litigation,  United States District  Court,  Southern
                   District of New York No. 94-CIV-3996 (RWS);  M.D.L. No. 1023.
                   The other state court suit, Lawrence A. Abel v. Merrill Lynch
                   & Co.,  Inc. et al.; Superior  Court of San  Diego,  Case No.
                   677313,  has been  dismissed without prejudice in conjunction
                    with a tolling agreement.

                   In consolidated action, the plaintiffs purport to represent a
                   class  of  persons  who  bought  one or  more  of  what  they
                   currently  estimate to be  approximately  1,650 securities on
                   NASDAQ  between  May 1,  1989  and May 27,  1994.  They  seek
                   unspecified  monetary  damages,  which would be trebled under
                   the  antitrust  laws.  The  plaintiffs  also seek  injunctive
                   relief,  as well as  attorney's  fees  and the  costs  of the
                   action.  (The state cases seek similar relief.) Plaintiffs in
                   the  consolidated   action  filed  an  amended   consolidated
                   complaint  that  defendants  answered  in December  1995.  On
                   November 26, 1996,  the Court  certified a class  composed of
                   retail   purchasers.   A  motion  to  include   institutional
                   investors in the class and to add class  representatives  was
                   granted.  In  December  1997,  SBI,  SB and R-H,  along  with
                   several other broker-dealer defendants, executed a settlement
                   agreement  with  the  plaintiffs.  This  agreement  has  been
                   preliminarily  approved  by the U.S.  District  Court for the
                   Southern  District  of New  York  but  is  subject  to  final
                   approval.

                   On July 17, 1996, the Antitrust Division of the Department of
                   Justice filed a complaint  against a number of firms that act
                   as market makers in NASDAQ  stocks.  The complaint  basically
                   alleged that a common understanding arose among NASDAQ market
                   makers which worked to keep quote spreads in

                                                          11

<PAGE>



                   NASDAQ stocks  artificially  wide.  Contemporaneous  with the
                   filing of the complaint, SBI, SB and other defendants entered
                   into a stipulated settlement agreement, pursuant to which the
                   defendants  would  agree not to engage in  certain  practices
                   relating  to the  quoting  of  NASDAQ  securities  and  would
                   further  agree to  implement  a program to ensure  compliance
                   with  federal  antitrust  laws  and  with  the  terms  of the
                   settlement.  In entering into the stipulated settlement,  SBI
                   and SB did not  admit  any  liability.  There  are no  fines,
                   penalties, or other payments of monies in connection with the
                   settlement.  In April 1997,  the U.S.  District Court for the
                   Southern District of New York approved the settlement. In May
                   1997,  plaintiffs  in the  related  civil  action  (who  were
                   permitted to  intervene  for limited  purposes)  appealed the
                   district  court's  approval of the settlement.  The appeal is
                   pending.

                   The  Securities  and  Exchange  Commission  ("SEC")  is  also
                   conducting a review of the NASDAQ  marketplace,  during which
                   it has  subpoenaed  documents  and  taken  the  testimony  of
                   various individuals  including SBI and SB personnel.  In July
                   1996,  the  SEC  reached  a  settlement   with  the  National
                   Association  of  Securities   Dealers  and  issued  a  report
                   detailing  certain  conclusions  with respect to the NASD and
                   the NASDAQ market.

                   In   December 1996, a complaint seeking unspecified monetary
                   damages   was    filed  by Orange County, California against
                   numerous   brokerage    firms,   including   SB, in the U.S.
                   Bankruptcy Court for the  Central  District   of California.
                   Plaintiff  alleged,  among other things, that the defendants
                   recommended  and   sold  to plaintiff unsuitable securities.
                   The  case   (County   of  Orange et al. v. Bear Sterns & Co.
                   Inc. et al.)  Has been   stayed by agreement of the parties.

Item 2.            Changes in Securities and Use of Proceeds - None

Item 3.            Defaults Upon Senior Securities - None

Item 4.            Submission of Matters to a Vote of Security Holders - None

Item 5.            Other Information - None

Item 6.            (a) Exhibits - None

                   (b) Reports on Form 8-K - None


                                                          12

<PAGE>




                                                      SIGNATURES

         Pursuant to the requirements of Section 13 or 15 (d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.


By:      Smith Barney Futures Management Inc.
         (General Partner)

By:
         David J. Vogel, President


Date:

         Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons on
behalf of the registrant and in the capacities and on the dates
indicated.
By:      Smith Barney Futures Management Inc.
         (General Partner)


By:
         David J. Vogel, President


Date:


By
         Daniel A. Dantuono
         Chief Financial Officer and
         Director

Date:

                                                          13

<PAGE>


                                  SIGNATURES
           Pursuant  to  the  requirements  of  Section  13 or  15  (d)  of  the
Securities  Exchange Act of 1934,  the registrant has duly caused this report to
be signed on its behalf by the  undersigned,  thereunto duly  authorized.  SMITH
BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.


By:        Smith Barney Futures Management Inc.
           (General Partner)


By:        /s/ David J. Vogel, President
           David J. Vogel, President

Date:       5/15/98

     Pursuant to the  requirements of the Securities  Exchange Act of 1934, this
report  has  been  signed  below  by the  following  persons  on  behalf  of the
registrant and in the capacities and on the dates indicated.
By:        Smith Barney Futures Management Inc.
           (General Partner)


By:        /s/ David J. Vogel, President
           David J. Vogel, President


Date:       5/15/98


By         /s/ Daniel A. Dantuono
           Daniel A. Dantuono
           Chief Financial Officer and
           Director

Date:       5/15/98



                                                          13

<PAGE>