The dollar rose against the yen in thin Tokyo trading Monday, February 19, as players sold the Japanese unit after Group of Seven urged Tokyo to step up its efforts for economic recovery, dealers said. The dollar traded at 115.94-97 yen at 5:00 pm (0800 GMT) in Tokyo Monday, against 115.70 yen in New York and 115.58 yen in Tokyo late Friday.
The greenback's rise came after the final communique from the weekend meeting of Group of Seven finance ministers in Palermo, Italy, stated Japan should make further efforts to maintain easy monetary policies. “The statement provided no incentive to buy the yen," said Kazuhiro Kaneko, a dealer at the Mizuho Trust Bank. The statement instead created a dollar-buying lead for other investors, who had sold off the US currency as it slumped last week.
"The statement has only prompted market participants to start adjusting their positions," said Kiyoshi Kuzuhara, a dealer at the Bank of Tokyo-Mitsubishi. "Investors, who went short on the dollar, launched buy-backs."
Falling share prices on the Tokyo bourse, which closed at a 28-month low, were another drag on the yen, dealers noted. The weak stock market "made and will continue to make investors wary, and some will sell the yen as a result," said Fuji Bank dealer Hideyuki Tsukamoto. The Nikkei-225 index dipped 55.90 points to finish at 13,119.59, the lowest level since October 1998 as a steep fall in the US tech-heavy Nasdaq, coupled with gloom over the Japanese economy, discouraged investors.
"The market, however, is relatively quiet, with many players sidelined because the US market is closed today for President's Day," Mizuho Trust Bank's Kaneko added.
Meanwhile, the euro changed hand at $0.9134-37, against $0.9126 in New York and $0.9073 in Tokyo late Friday. Against the yen, the euro was quoted at 105.91 around 5:00 pm, compared with 105.63 in New York and 104.86 in Tokyo Friday afternoon.
"The euro was also sold down last week, so market participants are buying back the euro to adjust their positions in today's quiet market," BoTM's Kuzuhara said. —(AFP)
© Agence France Presse 2000
© 2001 Mena Report (www.menareport.com)
