The dollar slipped against the yen in Tokyo Tuesday as short-term traders sold the greenback on speculation that a failed Japanese insurer may sell its foreign bonds, dealers said.
The US currency traded at ¥108.25 around 6:00 pm (0900 GMT), down from ¥108.85 in London and 109.08 yen in Singapore late Monday.
Both Tokyo and New York markets were closed Monday due to public holidays. “Speculators sold dollars as they suspect Chiyoda Mutual Life might sell its foreign bonds," said Mizuho Trust and Banking dealer Kazuhiro Kaneko. Troubled Chiyoda Mutual Life Insurance Co., Japan's 12th largest insurer, collapsed Monday under a mountain of bad loans accumulated during Japan's bubble economy, which burst in the early 1990s.
However, the collapse of Chiyoda, the biggest post-war corporate failure in Japan, also dampened sentiment on the economy, preventing the yen rising further, another dealer said.
The euro meanwhile bought $0.8719 around 6:00 pm, up from $0.8673 in London and $0.8687 in Singapore late Monday.
"After holidays in Tokyo and New York, there is no lead," the dealer said. Against the yen, the euro bought ¥94.37, down slightly from ¥94.39 in London and ¥94.75 in Singapore late Monday.
The euro's fall was also triggered by the rumoured selling of foreign bonds by Chiyoda, dealers said.
In late Singapore trade, the dollar rose to 1.7499 Singapore dollars from 1.7466, 8,820 Indonesian rupiah from 8,775, 46.885 Philippine pesos from 46.55, 42.775 Thai baht from 42.525, and 1,119.1 South Korean won from 1,116.96. The greenback fell to 31.3 Taiwan dollars from 31.025. – (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)