Dollar, Stocks Close Lower
TOKYO (AP) _ The dollar ended lower against the Japanese yen Monday, while prices on the Tokyo Stock Exchange finished down for the third straight session.
The dollar finished at 98.47 yen, down 0.49 yen from Friday’s Tokyo close and below its finish in New York Friday at 98.90 yen. The dollar’s low was 98.40 yen, and the high 98.65.
The U.S. currency weakened at the open as market players took profits by selling it against the German mark. It moved little the rest of the day, dealers said.
Takayuki Sudo, a dealer at Citibank, said the dollar hit its morning low on new reports that the Group of Seven industrial nations will not coordinate intervention in the currency market. That dimmed hopes for a U.S. interest rate hike, which would strengthen the dollar, he said.
Sharp rises in the value of the yen can hurt Japan’s export-oriented economy by boosting domestic production costs and making Japanese products less price-competitive abroad.
The 225-issue Nikkei Stock Average fell 165.23 points, or 0.81 percent, to end the day at 20,297.66. On Friday, the average fell 160.03 points, or 0.78 percent, to close at 20,462.89.
The Tokyo Stock Price Index of all issues listed on the first section was down 16.07 points, or 0.98 percent, to 1,621.79. The TOPIX fell 14.12 points, or 0.85 percent, to 1,637.86 on Friday.
Many stock investors consider the current yen-dollar exchange rate to be relatively stable, said Paul Migliorato, senior salesman at Jardine Fleming Securities Ltd.
″Without exchange rates to worry about, the market is reacting to supply- and-demand forces, and there is no demand,″ he said.
Volume was a low 220 million shares, down from 279 million Friday. Losers swamped gaining issues 839 to 167, with 170 issues unchanged.
The price of the benchmark No. 164 10-year Japanese government bonds was 98.47 yen, up 0.04 yen from Friday’s close. Their yield was unchanged at 4.335 percent.