The dollar retreated against the yen in late Singapore trading Thursday, November 23, in a listless market, with Japanese markets closed for the Labor Thanksgiving Day holiday, currency dealers said.
Around 3:30 pm (0730 GMT) the dollar changed hands at 110.10 yen, down from 110.20 yen at the close of trading in New York Wednesday but up from 110.00-05 yen in Tokyo late Wednesday.
The euro fetched $0.8445, compared with $0.8440 in New York and $0.8458-61 in Tokyo.
Against the yen, the euro was quoted at 93 yen, down from 93.07 in Tokyo.
The yen's reprieve against the dollar was expected to be short-lived as the political disarray in Japan continued, dealers said.
"There's still quite a bit of negative political developments," said Thio Chin Loo, a currency strategist at BNP Paribas, referring to Japanese Prime Minister Yoshiro Mori's struggles after he survived a no-confidence vote.
"We have to see how the market opens tomorrow," she said.
Dealers said the Japanese premier's authority had weakened somewhat even though he won the crucial vote.
The premier would find it difficult to push ahead with expansive stimulus packages crucial to protecting Japan's fragile economic recovery, dealers said.
"The present big government policy will be challenged and cannot be counted on to spur the economy's recovery," said Lee Boon Keng, a treasury strategist at DBS Group Holdings.
"Without growth, or prospect of it, capital is not going to flow into the country's capital market," he said.
"The recent slump in the Nikkei is testimony to the current weak sentiment surrounding the economy," he added.
Elsewhere in Asia, the South Korean won plummeted against the dollar as doubts emerged over the pace of economic reforms in the country.
"The won's plunge reflects investors' doubts about South Korea's economy and reforms," said Oh Suk-Tae of CitiBank.
In late Singapore trading, the dollar changed hands at 1,192.75 won, up from 1,173.76 on Wednesday.
The dollar also surged against the Singapore dollars, trading at 1.7565 from 1.7555, 49.39 Philippine Pesos from 49.09, and 32.938 Taiwan dollars from 32.865.
It fell to 9,435 Indonesian rupiah from 9,450, and 43.915 Thai baht from 43.935.— (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)
