Dollar edges up against yen in Tokyo on Japanese political uncertainty

Published November 21st, 2000 - 02:00 GMT

The dollar edged up against the yen in Tokyo Tuesday as investors sold the Japanese currency on expectations the political turmoil in Japan is far from over, dealers said. 

 

The dollar traded at 109.87-90 yen at 5:00 pm (0800 GMT), up slightly from 109.89 yen in New York and from 109.12-15 yen in Tokyo late Monday. 

 

"Investors do not think the political turmoil within the ruling Liberal Democratic Party (LDP) will be settled, which is a negative factor for the yen," Fuji Bank dealer Hideyuki Tsukamoto said. 

 

Japan's embattled Prime Minister Yoshiro Mori survived a no-confidence motion early Tuesday after rebels from his own party, led by Koichi Kato, withdrew their threat to back it at the eleventh hour. 

 

"The yen faced selling pressure as investors were uncertain whether Kato and his followers might leave the LDP, or if the turmoil might affect the budget drafting process, even though the immediate crisis has been resolved," Sanwa Bank dealer Mitsuru Sahara said. 

 

He added the dollar would be traded around the 110 yen level on Tuesday and Wednesday. 

 

The US dollar posted a mixed performance against Asian currencies in late Singapore trade. 

 

The dollar rose to 1.755 Singapore dollars from 1.7538, 9,455 Indonesian rupiah from 9,435, 1,165.78 South Korean won from 1,149.01, and 32.493 Taiwan dollars from 32.449. 

 

But the greencack fell to 49.53 Philippine pesos from 49.83 and 44.195 Thai baht from 44.315. 

 

The euro meanwhile traded at $0.8520-23 at 5:00 pm, up from $0.8509 in New York and $0.8498-$0.8501 in Tokyo late Monday, November 20. 

 

"Investors think the European Central Bank could intervene to support the euro on Thursday when both New York and Tokyo markets will be off for a holiday," Sahara said. 

 

Against the yen, the euro bought 93.64, up from 93.53 in New York, and from 92.77 in Tokyo Monday afternoon. 

 

In Singapore, the euro was seen remaining under pressure in the absence of intervention from the European Central Bank, research house IDEAglobal.com said. 

 

However, the euro could get a boost from German industrial figures due to be released soon, the research house added. 

 

The figures are expected to "continue indicating that the majority of businesses are still optimistic about the overall economic outlook," it said, adding that "option volumes continue to suggest range-bound euro/dollar (trade)."— (AFP)  

 

© Agence France Presse 2000  

© 2000 Mena Report (www.menareport.com)

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