Dollar Falls to Near 80 Yen, Stocks Gain
TOKYO (AP) _ The U.S. dollar fell to a new record low against the yen early Monday before stabilizing in the afternoon with the help of the Bank of Japan’s aggressive intervention.
In a 90-minute nosedive, the dollar fell by more than 4 yen from 84.20 yen to 80.15 yen, its lowest level since modern exchange rates were established in the late 1940s. But by 2 p.m., the dollar was back up to 82.62 yen.
``The dollar is facing massive waves of selling, and they’re unstoppable,″ said Ayako Hashimoto, a Dai-Ichi Kango Bank currency dealer.
A currency dealer for Sakura Bank said Japanese traders were selling dollars as the chances the United States might raise interest rates faded after a report Friday of rising U.S. unemployment.
Finance Minister Masayoshi Takemura urged the United States to take stronger measures to stem the dollar’s continuing fall. Takemura also indicated the government would announce monetary measures later this week to stop the yen’s further appreciation.
Traders said dollar selling was boosted by market disappointment at the lack of coordinated efforts by U.S., Japanese and European central banks to support the ailing dollar. Traders also said selling by central banks in Asian countries contributed to the dollar’s decline.
On the Tokyo stock market, the 225-issue Nikkei Stock Average was up 412.04 points, or 2.62 percent, to climb to 16,131.54 as of 2 p.m. On Friday, the index had fallen 96.37 points, or 0.61 percent.