Dollar Down, Stocks Up
TOKYO (AP) _ The dollar inched down against the Japanese yen Wednesday, and share prices rose sharply on the Tokyo Stock Exchange.
The dollar closed at 121.85 yen, down 0.30 yen from Tuesday’s close of 122.15 yen. Opening at 121.77 yen, the currency moved within a narrow range of 121.70-121.90 yen.
The Nikkei Stock Average of 225 selected issues, a 334.98-point winner the previous day, added another 260.60 points, or 0.89 percent, to finish trading at a new high of 29,578.90. The index quickly gained 162.55 points shortly after the market opened and continued rising.
The dollar’s decline followed losses in New York after Tuesday’s release of U.S. gross national product figures for the third quarter. The GNP growth was 2.6 percent, up from the previous quarter’s 2.2 percent but lower than had been expected by many in the currency markets.
But a currency dealer at Mitsubishi Bank said the GNP showing did not create a stong downward force on the dollar, which he said should remain little changed in Tokyo before the release of U.S. unemployment rate figures Friday in Washington.
″Market players were inclined to wait on the sidelines before the jobless rate report,″ he said on condition of anonymity.
A Bank of Tokyo dealer said the dollar was trading in a tight range because of differing opinions about the currency’s future. Some traders expect the dollar will be stable in the short term because it did not fall below 121.50 yen on overseas markets Tuesday, while others believe it is likely to slide below 120 yen, he said.
Share prices were higher almost across the board following a rise in the Dow Jones industrial average in New York and the U.S. gross national product report.
″Market players in Tokyo took the GNP figure positively mainly because it was more or less within the range that most of them had expected,″ Toshiyuki Nishiguchi of Daiwa Securities said.
″Now the market is waiting for the U.S. jobless rate to determine how to act,″ he said.