Dollar down in Tokyo
Jul. 17, 1986
TOKYO (AP) _ The U.S. dollar opened at a post-World War II record low and continued falling in early trading on the Tokyo Foreign Exchange Market Thursday, dropping below 157.00 yen.
The dollar was quoted at 156.60 yen at mid-morning, after opening at 157.40 yen.
Despite Bank of Japan Governor Satoshi Sumita's remark Wednesday that the central bank would continue to intervene to stabilize the Japanese currency, investors were selling dollars partly because of a Japanese press report from Washington that the U.S. Federal Reserve would tolerate the weak dollar, one trader at a major Japanese commercial bank said.
Traders did not immediately know the exent of the Japanese central bank's mid-morning dollar-buying.
A senior Japanese commercial bank official said the dollar-selling pressure was high Thursday because many traders believed the dollar would go as low as 150 yen.
The U.S. currency's plunge against the yen in Tokyo followed record overnight closings in overseas markets. The dollar closed Wednesday at 157.75-157.85 yen in New York and 158.25-158.35 yen in London.
It had closed at 158.30 yen in Tokyo on Wednesday, the lowest closing rate since the dollar's finish at 159.25 yen on July 7, as votes giving the ruling Liberal Democratic Party a major victory in parliamentary elections were being counted.
Traders predicted at the time that if Prime Minister Yasuhiro Nakasone stayed in power as a result of the victory, his policy of allowing the yen to rise gradually against other currencies would probably continue.
The dollar has fallen about 85 yen against the dollar since finance chiefs of five major industrialized nations decided to coordinate policies to bring the value of the U.S. currency down.