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Dollar Closes Higher, Index Edges Up

May 31, 1990

TOKYO (AP) _ The dollar closed sharply higher against the Japanese yen Thursday, and the key index on the Tokyo Stock Exchange edged up.

The 225-share Nikkei Stock Average rose 204.54 points, or 0.62 percent, closing at 33,130.80.

The dollar closed at 151.75 yen, up 1.00 yen from Wednesday’s 150.75-yen finish. The currency opened at 151.65 yen and ranged between 151.53 yen and 152.15 yen.

Dealers said the dollar’s rise followed its overnight gains on overseas markets.

Market players bought the dollar amid uncertainty over Soviet politics, dealers said. Dealers cited the election of Boris Yeltsin, a frequent critic of Soviet President Mikhail S. Gorbachev, as Russian president.

Dollar-buying interest by Japanese institutional investors remained strong, said a trader with a commercial bank in Tokyo, speaking on condition of anonymity.

He said the market is also watching the Washington summit between President Bush and Gorbachev.

On the stock exchange, Hideyuki Matsuda, a trader with Nippon Kangyo Kakumaru Securities Co., attributed the index’s small losses in early trading to the yen’s weakness against the dollar.

″However, because market players feel strongly that trading has been influenced too much by the currency market movements, they started buying issues that have little to do with foreign exchange, and that’s when the index started recovering,″ he said.

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