Euro ails in Tokyo trade

Published October 26th, 2000 - 02:00 GMT

The euro languished below $0.83 in Tokyo Thursday after plummeting to new lows as fears of intervention after a G20 meeting in Montreal evaporated.  

 

The euro traded at $0.8275 around 2:00 pm (0500 GMT), up a touch from $0.8270 in New York but well down from $0.8297 in Tokyo late Wednesday. 

 

The euro hit a record low in afternoon trading in New York Wednesday of $0.8250. 

 

"The euro is trading barely above its record low level," Fuji Bank dealer Hideyuki Tsukamoto said. 

"Since there was no further talk of intervention at the G20 meeting, and investors think there will be no joint intervention before the US presidential election (next month), the euro is being sold," the dealer said. 

 

Finance ministers and central bankers from 20 industrialized and emerging market countries — including the United States, Britain, France, Germany, Japan, Italy and Canada — concluded a day of talks in Montreal Wednesday with no mention of the euro's uncertain fate. 

 

The euro also bought 89.63 Japanese yen, down from 89.69 in Tokyo Wednesday afternoon. The euro fell to a new low of 89.24 yen in London Wednesday. 

 

The dollar meanwhile bought 108.31-33 yen, up from 108.14-23 yen in New York and 108.06 yen in Tokyo late Wednesday. 

 

"The Nikkei has been rather low, which has encouraged investors to buy the dollar," Tsukamoto said.  

The Tokyo Stock Exchange's Nikkei-225 index dropped 129.79 points, or 0.9 percent, to close Thursday morning at 14,710.68.  

 

"The chaos of Japanese politics also seems to be a factor for yen-selling," Tsukamoto said.  

Prime Minister Yoshiro Mori is facing renewed calls for his resignation after revealing a secret offer to North Korea to resolve a long-running row over the Stalinist nation's alleged kidnapping of 10 Japanese nationals.— (AFP)  

 

© Agence France Presse 2000  

 

 

 

© 2000 Mena Report (www.menareport.com)

You may also like