Yen Pressured on Disappointment With Japan's New Government
August 11, 1998 - 0:0
TOKYO - The Japanese yen was under pressure Monday with investors disappointed by Prime Minister Keizo Obuchi's policy speech last week, dealers said. Market players are very much disappointed that the new Japanese government has introduced nothing surprising, said a dealer at Sumitomo Bank Ltd. The yen-selling trend will continue for the time being as no one wants to support the yen, the dealer said.
The Japanese unit plunged to as low as 146.53, the lowest level against the dollar since mid-June, in early afternoon trading. At 2:00 P.M. (0500 GMT), the Japanese yen traded at 146.41 against the dollar, compared with 146.17 yen here Monday morning and 146.23 yen in New York late Friday. Against the mark, the dollar traded at 1.7801 at 2:00 a.m.
(0500 GMT), compared with 1.7804 in early Tokyo trading and 1.7798 in New York. Yen-selling sentiment was fuelled by growing fear of another currency crisis in Asia triggered off by a possible yuan devaluation, dealers said. The sustained fall of local share prices also assisted the dollar's firm tone earlier, dealers said. Participants are basically hoping to test 146.75 yen, the dollar's 1998 high, as early as today, a Nippon Credit Bank dealer said.
On the other hand, they are finding it is difficult to boost long positions from current levels, given the rapid rally of the unit which may encourage the authorities to step in to block further yen weakness, the dealer said. Market players remained cautious about trading with concern growing over possible intervention by the Japanese Central Bank, dealers said. Selling by exporters prevented the dollar from extending its gains in regional trade against the yen, triggering follow-through profit-taking, dealers said.
Participants are expected to continue to follow closely the movements of China's yuan and the Hong Kong dollar, seeking to assess the dollar's upside prospects against the yen, they said. Depending on the trend of the yuan and the hong kong dollar, we may have to take into consideration the possibility of the dollar rallying to 150 yen, one city bank dealer said.
But a more reasonable estimate suggests that the dollar will hold onto the 144-148 yen range this week, the dealer said. Dealers said the dollar was expected to move higher in European trading to above 146.50, with support remaining firm amid ongoing expectations for a devaluation of the yuan and the Hong Kong dollar. (AFP)
The Japanese unit plunged to as low as 146.53, the lowest level against the dollar since mid-June, in early afternoon trading. At 2:00 P.M. (0500 GMT), the Japanese yen traded at 146.41 against the dollar, compared with 146.17 yen here Monday morning and 146.23 yen in New York late Friday. Against the mark, the dollar traded at 1.7801 at 2:00 a.m.
(0500 GMT), compared with 1.7804 in early Tokyo trading and 1.7798 in New York. Yen-selling sentiment was fuelled by growing fear of another currency crisis in Asia triggered off by a possible yuan devaluation, dealers said. The sustained fall of local share prices also assisted the dollar's firm tone earlier, dealers said. Participants are basically hoping to test 146.75 yen, the dollar's 1998 high, as early as today, a Nippon Credit Bank dealer said.
On the other hand, they are finding it is difficult to boost long positions from current levels, given the rapid rally of the unit which may encourage the authorities to step in to block further yen weakness, the dealer said. Market players remained cautious about trading with concern growing over possible intervention by the Japanese Central Bank, dealers said. Selling by exporters prevented the dollar from extending its gains in regional trade against the yen, triggering follow-through profit-taking, dealers said.
Participants are expected to continue to follow closely the movements of China's yuan and the Hong Kong dollar, seeking to assess the dollar's upside prospects against the yen, they said. Depending on the trend of the yuan and the hong kong dollar, we may have to take into consideration the possibility of the dollar rallying to 150 yen, one city bank dealer said.
But a more reasonable estimate suggests that the dollar will hold onto the 144-148 yen range this week, the dealer said. Dealers said the dollar was expected to move higher in European trading to above 146.50, with support remaining firm amid ongoing expectations for a devaluation of the yuan and the Hong Kong dollar. (AFP)