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Dollar Lower in Tokyo At Midday, Stocks Up

April 12, 1991

TOKYO (AP) _ The dollar was trading lower against the Japanese yen Friday morning, while share prices rose moderately.

After opening at 135.85 yen, the dollar was changing hands at 135.88 yen around midday, down 0.77 yen from Thursday’s close of 136.65 yen and also below its overnight finish at 136.20 yen in New York.

On the Tokyo Stock Exchange, the Nikkei Stock Average of 225 selected issues gained 57.99 points, or 0.22 percent, closing the morning session at 26,483.18. On Thursday, the average rose 156.33 points.

In bond dealings, the price of benchmark No. 129 10-year Japanese government bonds stood at 98.10 percent around midday, up from Thursday’s 97.94-point finish. Their yield fell to 6.740 percent from 6.770 percent.

Kan Sugita, a dealer with the Bank of Tokyo, said the dollar remained in a narrow range in light trading.

″It’s like the door is open, but practically no business is being done inside,″ Sugita said.

He said traders are waiting for the release of the U.S. consumer price index for March, due out later Friday in Washington.

The dollar’s lower start followed its decline in New York on anticipation that the Federal Reserve Board, the U.S. central bank, would move to lower interest rates. Lower interest rates tend to push the dollar down by making dollar-denominated securities less attractive to investors.

U.S. economic data released Thursday showing a decline in inflation and a greater-than-expected drop in retail sales were seen as encouraging the Fed to lower interest rates.

Securities dealers said the Nikkei index continued to rise on small-lot buying in thin trading.

While showing some expectation for lower interest rates in the United States, the market overall held a wait-and-see mood in the absence of fresh incentives, said Naoto Kanazawa of Taiheiyo Securities.

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