Euro rises against dollar and yen in Tokyo trade

Published October 2nd, 2000 - 02:00 GMT

The euro rose against the dollar and yen in Tokyo Monday as investors were betting the European Central Bank would intervene in support of the common currency, dealers said. 

 

The euro traded at $0.8829 around 2:00 p.m. (0500 GMT), up from $0.8821 in New York and $0.8800 in Tokyo late Friday. 

 

"Investors keep buying the euro as they believe the European Central Bank is getting ready to intervene to shore up the currency," said Fuji Bank dealer Wako Ogawa. 

He said the ECB might be forced to step in after Danish voters dealt the euro a major blow last week by rejecting adoption of the currency in a referendum.  

 

"Fear of intervention put a floor on the euro," DBS Bank in Singapore said in a report. 

Against the yen, the euro traded at 95.49, up from 95.37 yen in New York and 94.82 yen in Tokyo Friday afternoon. 

The dollar meanwhile bought 108.16-18 at 2:00 p.m., up from 108.12 yen in New York and 107.73 yen in Tokyo late Friday. 

 

"The fall of the Nikkei caused dollar-buying," Ogawa said. 

The Tokyo Stock Exchange's Nikkei-225 index lost 177.44 points, or 1.1 percent, to close Monday morning at 15,569.82. 

 

The fall in share prices reflected worries among investors that the Bank of Japan's "Tankan" survey of business confidence, to be released on Tuesday, would show little significant improvement from the previous quarter. 

"Investors do not expect any major economic recovery to be reflected in the September Tankan," said Ogawa. "So investors are shying away from the yen."— (AFP)  

 

© Agence France Presse 2000  

 

© 2000 Mena Report (www.menareport.com)

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