Euro lower against dollar in Tokyo trade
The euro fell against the dollar in Tokyo Monday on fading prospects of joint intervention by central banks to support the currency, a dealer said.
The European single currency traded at $0.8406 around 6:10 pm (0910 GMT), down from $0.8420 in New York and $0.8457 in Tokyo late Friday.
"Ahead of the US presidential election, it is not easy for the US and European central banks to intervene jointly to sustain the euro," said Fuji Bank dealer Hideyuki Tsukamoto.
Larry Lindsey, chief economic advisor to Republican presidential candidate, George W Bush, reportedly said that joint intervention had failed to provide sustained support for the euro the last time it was tried, the dealer added. Market intervention last month by the Group of Seven central banks buoyed the euro briefly, sending it scurrying back up towards $0.90.
"Only intervention has been supporting the euro, but if there isn't any, the euro will only fall again," Tsukamoto said.
Against the yen, the euro traded at 91.64, unchanged from 91.64 in New York, and down from 91.80 in Tokyo Friday afternoon.
Analysts in Singapore said the euro would remain vulnerable to further falls this week if the release of economic data suggested the US economy was headed for a soft landing, analysts said.
"A more moderate third quarter GDP (gross domestic product) growth would signal that the US economy is on track for a soft landing," DBS Group said in a report.
"This would be bearish for the euro," it said.
Advance figures for third quarter GDP are due out in the United States on Friday.
The dollar meanwhile bought 109.01 yen around 6:10 pm, up from 108.85 yen in New York and 108.54 yen in Tokyo late Friday.
"Since US stocks were solid at the end of last week but the collapse of Kyoei Life Insurance Co underlined the weakness of Japan's economic recovery, investors sold the yen and bought the dollar," Tsukamoto said.
Stocks in the United States moved higher Friday as the markets shrugged off the recent volatility.
Meanwhile, crippled Kyoei sought court protection from its creditors Friday to become Japan's biggest corporate failure since World War II, officials said.
In late Singapore trade, the US dollar rose to 1.7557 Singapore dollars from 1.7505 last Friday, 43.875 Thai baht from 43.4, 48.87 Philippines pesos from 48.74 and 8,955 Indonesian rupiah from 8,905.
It fell to 32.064 Taiwan dollars from 32.1465 and 1,128.20 South Korean won from 1,128.25.— (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)