Dollar Slips, Stocks Fall Moderately
TOKYO (AP) _ The dollar slipped against the yen Tuesday despite intervention by Japan’s central bank to stem the dollar’s slide, traders said. Share prices on the Tokyo Stock Exchange fell moderately.
The dollar closed at 96.76 on the Tokyo foreign currency market, down 0.64 yen from Monday’s close and also below its overnight New York finish at 97.13 yen.
Dealers said the Bank of Japan was buying dollars all day, trying to keep levels from plunging to new historic lows. The dollar closed at 96.68 yen Friday, its lowest level since the modern currency trading system was adopted after World War II.
The central bank does not comment on its intervention activities.
Traders said selling pressure against the U.S. currency remained considerable, with few dollar buyers other than the Bank of Japan.
″After Toyko closes we’ll see a new pressure on the down side,″ said Gilberto Suzuki of Citibank.
Japan’s trade minister Ryutaro Hashimoto has called on other Group of Seven industrial nations to cooperate in stabilizing the yen’s volatile exchange rates.
But Shoichi Handa of First National Bank of Chicago said European central banks still appeared reluctant to intervene at current levels.
The dollar’s renewed weakness followed a downward drift Monday in New York, where traders waited for more fresh economic data or news to drive the market.
On the stock market, the 225-issue Nikkei Stock Average fell for the third consecutive session, shedding 120.22 points, or 0.61 percent, to 19732.15. On Monday, the average fell 46.71 points, or 0.23 percent, closing at 19,852.37.
Volume on the first section of the Tokyo Stock Exchange was estimated at 220 million shares, up from 181.78 million shares Monday.
Retreating issues outnumbered advancing issues 632 to 301, while 240 issues were unchanged.
The Tokyo Stock Price Index of all issues listed on the first section was
down 6.79 points, or 0.43 percent, to 1,568.40. The TOPIX was down 0.24 percent, or 3.75 points, to 1,575.19 the day before.
Share prices moved lower as investors were taking a cautious position, watching exchange rate movements, dealers said. An overnight fall on Wall Street also discouraged some investors.
As of 3 p.m. (2:00 a.m. EDT), the price of the benchmark No. 164 10-year Japanese government bonds rose to 95.89 yen from Monday’s close of 95.83 yen. Their yield fell by 0.010 percentage point to 4.745 percent.