The euro enjoyed Christmas cheer in Tokyo currency trading Monday, December 25, as investors fretted over the bleak midwinter outlook facing the US and Japanese economies.
The common European currency held steady after breaking the $0.92 threshold on Friday for the first time since August 1.
It bought $0.9250-53 at 5:00 pm (0800 GMT) in Tokyo, up from $0.9230 in New York and $0.9179-82 in Tokyo late Friday.
"The euro could rise to the $0.93 level tomorrow or the day after tomorrow as overseas markets resume trading after the Christmas break," Bank of Tokyo-Mitsubishi dealer Kiyoshi Kuzuhara said.
"Investors are buying back the euro as they are worried about the uncertainty facing the US economy," he said.
Against the yen, the euro was quoted at 104.41, up from 104.20 in New York and 103.41 in Tokyo Friday afternoon.
"Investors are favoring the euro as they think the Japanese and US economies are growing more unsteady than euroland's," said Fuji Bank dealer Hideyuki Tsukamoto.
The euro has gained more than 12 percent against the greenback since October 26 when it plumbed $0.8230, its lowest point since its January 1999 launch.
The yen derived no benefit from a surge in the Tokyo Stock Exchange's Nikkei-225 index, which erased some of the steep Wall Street-led losses of last week.
"The Nikkei rose just because the Nasdaq did. There is no particular lead which would encourage currency players to favor Japan," Tsukamoto said.
The Nikkei jumped 504.53 points, or 3.8 percent, to close Monday afternoon at 13,931.61 in response to a 7.56-percent surge by the tech-laden Nasdaq composite in New York Friday.
"The Nikkei is still weak. It is unclear whether it has bottomed out or not," said Kuzuhara.
The dollar meanwhile bought 112.89-92 yen in thin Christmas Day trade, up slightly from 112.87 yen in New York and 112.58-61 yen in Tokyo late Friday.
"Investors are even more concerned about the Japanese economic outlook than the US one," said Tsukamoto.— (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)
