Dollar Falls Against Yen Despite Intervention
TOKYO (AP) _ The U.S. dollar fell today against the Japanese yen despite the intervention of the nation’s central bank, while stock prices inched down on the Tokyo Stock Exchange.
The dollar closed at 124.68 yen, down 0.62 yen from Tuesday’s close of 125.30 yen. The currency opened at 124.82 yen and although the Bank of Japan began buying dollars, it slipped lower and ranged between 124.40-124.85 yen.
It was the third straight day the Bank of Japan intervened in the market in an effort to keep the dollar from declining, said Takamasa Yamasaki of the Daiwa Bank.
He said that action and similar intervention in the United States has not worked ″because market players are thinking the banks’ move was just one of the temporary political tactics ahead of the U.S. presidential election″ on Nov. 8.
″Unless the weaker dollar makes investors worry about negative effects to the Japanese economy, the current trend is likely to continue,″ Yamasaki said.
On the Tokyo stock exchange, the 225-issue Nikkei Stock Average lost 28.41 points, or 0.1 percent, closing at 27,985.26. The index gained 60.33 points shortly after the market opened, then gradually declined.
″Share prices fell because some investors sold issues for profit-taking″ following seven straight days of market gains that ended Tuesday, said an analyst with Nomura Securities, Japan’s largest brokerage.
Trading was active with volume on the first section estimated at 1.9 billion shares.