Dollar Falls After 11-Day Climb; Shares Surge
TOKYO (AP) _ The dollar fell against the Japanese yen today, breaking a series of 11 consecutive daily advances, while Tokyo share prices surged in heavy trading.
The dollar closed at 141.07 yen, down 0.68 yen from Thursday’s close of 141.75 yen and also below the New York finish of 141.25 yen on Thursday. The dollar had gained 4.15 yen in the past 11 consecutive sessions in Tokyo.
The Nikkei Stock Average of 225 selected issues added 285.72 points, or 1.15 percent, closing the week at 25,093.89. On Thursday, the average gained 325.48 points, or 1.33 percent.
In the currency markets, the dollar opened at 141.18 yen and ranged between 140.90 yen and 141.25 yen. Spot trading totaled $7.37 billion, down from Thursday’s $8.32 billion.
The dollar started lower here following its overnight slip against the yen in London and New York, where rumors of central bank intervention pushed the currency down, said Michihiro Okada, an exchange dealer with Mitsui Trust and Banking.
Traders in Tokyo were looking for continued assurances that the U.S. economy is making a turnaround, other dealers said. Later today, the U.S. Labor Department was to release the May consumer price index and the Federal Reserve Board was to announce industrial production and capacity utilization rates for May.
Toru Chiba, assistant general manager in the Treasury Department at the Bank of Yokohama, said the underlying sentiment favoring the dollar remained unchanged.
″It (the dollar) may try to reach the 142 yen level next week through adjusting dollar-positions″ held by market players, he said.
In the Tokyo stock market, volume on the first section was estimated at 900 million shares, up sharply from Thursday’s 270 million shares.
Advancing issues outnumbered declines 676 to 304, with 163 unchanged.
″There were massive arbitrage buying and selling linked to the special quotation for June futures and options, with its turnover reaching 650 million shares″ during the morning trading alone, said Kazuo Hamasaki, an analyst with Sanyo Securities.
In arbitrage trading, investors seek profits from the spread between the spot and futures markets.
Active buying by investment trust funds in the afternoon also contributed to the index’s rise, Hamasaki said.
Gainers included autos, machinery and chemical issues as well as food shares.
In bond dealings, the price of the benchmark No. 129 10-year Japanese government bonds closed at 97.38 points, down from Thursday’s 97.54-point finish. Their yield rose to 6.880 percent from 6.850 percent.