Dollar Gains no Benefit from Bush Victory Declaration

Published November 27th, 2000 - 02:00 GMT

The dollar fell against major currencies in Asia Monday despite Republican George W. Bush declaring victory in the US presidential election, dealers said. 

The greenback traded at 111.00-05 yen at 5:00 PM (0800 GMT), down from 111.33 yen in New York but up from 110.80-83 yen in Tokyo late Friday. 

"Investors sold the dollar for profit-taking once it touched 111.50 earlier (Monday in Tokyo)," said Mitsubishi Trust and Banking senior dealer Toshihiko Sakai. 

"Investors had already factored in Bush's lead in the race," Sakai said. 

The dollar has edged up in past sessions on hopes that Bush will defeat Democrat Al Gore in the White House race and introduce market-friendly tax-cutting policies.  

Bush claimed victory after being certified the winner of the crucial Florida contest but Vice President Gore vowed to challenge the results in court.  

The latest episode in the presidential drama had little impact on Asian currency markets, agreed Mizuho Trust and Banking dealer Kazuhiro Kaneko. 

"The market had already woven in a Bush victory, so it was no drastic move," he said. 

Traders were cautious as they await Gore's next move, but the dollar was still set to rise against the yen, HSBC currency analyst Tsutomu Shirafuji said. 

"Both Japan and the US have uncertainty over their politics and share prices," Shirafuji said, after embattled Prime Minister Yoshiro Mori last week escaped a no-confidence vote in Japan's parliament.  

"But in the US, even if the president is not decided, (Federal Reserve chairman Alan) Greenspan is there to lead the economy to the so-called soft-landing," Shirafuji said. 

"In Japan, there will be no new (economic) measures, which investors hope for, taken by Mori," he said. 

The euro meanwhile bought 0.8413-16 dollars at 5:00 pm, up from 0.8398 dollars in New York and 0.8406-09 dollars in Tokyo late Friday. 

"Investors bought the euro as French central bank governor (Jean-Claude) Trichet said that a strong euro is in European interests," said Mitsubishi Trust's Sakai.  

Against the yen, the euro bought 93.57, up from 93.18 in Tokyo late Friday. 

HSBC's Shirafuji warned, however: "There is no good lead for the euro zone with its economy slowing down."  

Trichet told a financial forum in Tokyo Monday that the euro had enjoyed "indisputable success" by bringing Europe's major economies closer together and hastening structural reform. 

The Frenchman is scheduled to take over as European Central Bank president when Wim Duisenberg of the Netherlands steps down. 

In late Singapore trade, the dollar retreated to 1.7564 Singapore dollars from 1.7571 Friday, 49.415 Philippine pesos from 49.470, 1,186.45 South Korean won from 1,188.87, and 32.8715 Taiwan dollars from 32.9130. 

The greenback rose to 43.620 Thai baht from 43.470, and 9,472.5 Indonesian rupiah from 9,455 -- TOKYO (AFP)  

 

 

 

 

© 2000 Al Bawaba (www.albawaba.com)

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