Nasdaq slump pulls dollar down in Tokyo

Published November 29th, 2000 - 02:00 GMT

The dollar edged lower against major currencies in Asia Wednesday, November 29, after high-technology shares on Wall Street tumbled to their lowest close since October last year, traders said. 

 

"After the Nasdaq's dive, investors are selling the dollar and buying the euro," Asahi Bank dealer Shigeru Nakane said. 

 

The European single unit bought $0.8576 around 5:00 pm (0800 GMT) here, up from $0.8565 in New York and $0.8525-28 in Tokyo late Tuesday. 

Tumbling technology stocks sent New York's Nasdaq composite down 145.59 points (5.1 percent) to 2,734.90 on Tuesday -- its lowest close since October 19, 1999. 

 

The impact on currency trading of the continuing rancour over the US presidential election was declining however, after the dollar had risen on hopes of a victory for tax-cutting Republican George W. Bush. 

 

"Until last week, the dollar had been bought against all currencies. Now investors are taking a breather in terms of buying the dollar," said Bank of Tokyo-Mitsubishi dealer Takeshi Iba. 

"The Nasdaq fell yesterday, and investors are also wary of intervention" by the European Central Bank to support the euro, he said. 

 

Against the yen, the euro was quoted at 94.48, up from 94.30 in New York and 94.18 in Tokyo late Tuesday. 

 

The dollar also bought 110.17-20 yen around 5:00 pm, up marginally from 110.08 yen in New York, but down from 110.44-47 yen in Tokyo late Tuesday.  

 

Investors were shunning the dollar ahead of US economic growth figures for July-September, Fuji Bank dealer Hideyuki Tsukamoto said, after a research group said US consumer confidence had slumped to its lowest level since October 1999. 

 

The greenback also fell in New York after the Chicago Federal Reserve Bank said the US economy faced a risk of increased inflationary pressure. 

 

"That remark affected the market to a certain extent," Tsukamoto said. 

 

"The US presidential election is gradually losing its impact on the market," he added. "I do not think it is having any direct bearing on the dollar's fall."  

 

The dollar fared better against minor Asian currencies in late Singapore trade.  

It rose to 49.618 Philippine pesos from 49.375, 9,475.00 Indonesian rupiah from 9,460.00 and 1.7564 Singapore dollars from 1.7535. 

The greenback was also up at 43.835 Thai baht from 43.60, 1,200.85 South Korean won from 1,182.38 and 32.96 Taiwan dollars from 32.929.— (AFP)  

 

© Agence France Presse 2000  

© 2000 Mena Report (www.menareport.com)

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