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Dollar Rises Marginally, Stocks Fall

May 31, 1993

TOKYO (AP) _ The dollar fell after its opening but finished marginally higher against the Japanese yen Monday in Tokyo, while share prices on the Tokyo Stock Exchange fell.

The dollar closed at 107.45 yen, up 0.07 yen from its close Friday. It opened at 107.72 yen after finishing Friday trading in New York at 107.00 yen. The currency ranged between 107.15 yen and 107.72 yen during the Tokyo session.

Dealers said the dollar opened higher as players covered short, or oversold, dollar positions, but it fell back by mid-morning when the short- covering was finished.

″The market believes that the dollar’s weakness across the board will continue, and it is hard to change the trend,″ said Shin Kobayashi, a dealer with Daiwa Bank.

Trading was thin because currency markets in New York and major European centers are closed Monday for holidays, he said.

The dollar’s 107.38-yen closing Friday was its lowest in Tokyo since modern exchange rates were set up in the late 1940s.

On the stock exchange, the 225-issue Nikkei Stock Average fell 291.34 points, or 1.40 percent, to close at 20,552.35. The average slipped 8.94 points, or 0.04 percent, on Friday.

The Tokyo Stock Price Index of all issues listed on the first section was down 18.22 points, or 1.10 percent, to 1,636.60. On Friday, the TOPIX was up 1.11 points, or 0.07 percent.

An estimated 350 million shares, down from Friday’s 550 million, changed hands on the first section.

Index-linked arbitrage selling, in which investors seek profits from price gaps between the spot and futures markets, pushed prices lower, traders said.

Concern that the yen’s appreciation will sharply cut into the value of profits earned by major exporters overseas hurt those companies’ shares, they said.

The price of the benchmark No. 145 10-year Japanese government bonds stood at 105.79 yen, up 0.17 yen from Friday’s finish. Their yield fell by 0.025 percentage points to 4.575 percent.

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