Dollar, Stocks Fall
TOKYO (AP) _ The dollar drifted lower against the Japanese yen for the second straight day Tuesday, while prices on the Tokyo Stock Exchange also fell.
The dollar closed at 104.10 yen, down 0.45 yen from Monday’s close of 104.55 yen and also lower than its overnight close of 104.20 yen in London.
Financial markets in New York were closed Monday for a holiday.
After opening at 104.30 yen, the dollar ranged between 103.80 yen and 104.65 yen.
Despite the Bank of Japan’s intervention to support the dollar, profit- taking and selling by Japanese exporters pushed the U.S. currency down, said Yuko Fukakusa of Tokai Bank.
Before the dollar’s 1.00-yen fall on Monday, it had climbed a total of 1.65 yen over four days, partly because of the central bank’s dollar-buying and persistent speculation that it soon would lower its official interest rates in an effort to stimulate the nation’s slumping economy.
Lower interest rates tend to weaken a nation’s currency.
″Following an overnight trend in London, investors favored the German mark against the dollar,″ Fukakusa said. A local newspaper report that the United States was not likely to do anything to help strengthen the dollar was another factor, she said.
On the stock market, the 225-issue Nikkei Stock Average shed 98.71 points, or 0.47 percent, closing at 20,962.10. The average had lost 55.40 points, or 0.26 percent, on Monday.
The Tokyo Stock Price Index of all issues listed on the first section was down 7.13 points, or 0.42 percent, to 1,689.78. It had shed 1.76 points, or 0.10 percent, to 1,698.67 Monday.
A profit-taking selling trend prevailed following a week of advances before Monday, dealers said.
The price of the benchmark No. 145 10-year Japanese government bonds was 109.72 yen, down 0.06 yen from Monday’s finish of 109.78 yen. Its yield rose to 3.970 percent from 3.960 percent.