Dollar Drops, Share Price Climb
TOKYO (AP) _ The dollar finished lower against the Japanese yen Friday, while share prices on the Tokyo Stock Exchange rose.
The dollar closed at 141.07 yen, down 0.68 yen from Thursday’s close of 141.75 yen and also below its overnight New York finish of 141.25 yen. After opening at 141.18 yen, it ranged between 140.90 yen and 141.25 yen.
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.
Volume on the market’s first section was estimated at 900 million shares, up sharply from Thursday’s 270 million shares.
In bond dealings, the price of the benchmark No. 129 10-year Japanese government bonds edged lower to 97.46 points at 3 p.m. from Thursday’s 97.54- point finish. Their yield rose to 6.865 percent from 6.850 percent.
Michihiro Okada, an exchange dealer with Mitsui Trust and Banking, said the dollar’s lower opening followed its overnight retreat against the yen in London and New York, where rumors of central bank intervention pushed the currency lower.
″Dollar sentiment turned out to be a bit bearish in Tokyo, though it may be temporary,″ Okada said.
He said the dollar would probably remain in a narrow range the rest of the day because of a lack of major market-moving factors but added that the dollar’s underlying firmness remained unchanged.
Traders in Tokyo are looking for continued assurances that the U.S. economy is making a turnaround, other dealers said. On Friday, the U.S. Labor Department releases the May consumer price index and the Federal Reserve Board releases industrial production and capacity utilization rates for May.
The dollar has gained 4.15 yen in the last 11 consecutive trading days in Tokyo.
On the stock exchange, the Nikkei index continued to rise with arbitrage buying outpacing selling linked to the special quotation for June futures and options, securities dealers said.
In arbitrage trading, investors seek profits from price differentials between the spot and futures markets.
″The market in general firmed, with blue chips issues being bought in particular,″ said Maki Fukushima of Nikko Securities.
″Participation in buying by institutional investors, who have been shy for some time, also supported the market,″ said another dealer with Nikko Securities, who spoke on condition of anonymity.