Dollar Drops Again, Stocks Rebound
TOKYO (AP) _ The dollar fell against the yen Thursday, while share prices on the Tokyo Stock Exchange rebounded.
The yen closed at 127.13 yen, down 0.55 yen from Wednesday’s finish of 127.68 yen. After opening at 126.93 yen, the currency ranged between 126.70 yen and 127.14 yen.
The Nikkei Stock Average of 225 selected issues gained 583.29 points, or 2.56 percent, closing at 23,400.28. The index shed 388.49 points Wednesday.
In bond dealings, the price of the benchmark No. 119 10-year Japanese government bonds rose to 85.94, up from Wednesday’s close of 85.56. Their yield fell to 7.500 percent from 7.585 percent.
Many economists expect the U.S. Federal Reserve Board will move to lower interest rates further soon. Lower interest rates tend to make a nation’s currency less attractive to investors.
Yuichi Sugiura, a dealer at Sanwa Bank, said the dollar was also weakened by easing tensions in the Middle East.
Though market players still feel uncertain about the Persian Gulf crisis, ″they lean more to the view there will be a peaceful settlement,″ Sugiura said.
On the stock market, the Nikkei index started higher on small-lot buying in a favorable reaction to the yen’s appreciation against the dollar as well as higher bond prices, securities dealers said.
″Share prices are rising in a broad front,″ said a dealer at Nikko Securities Co. who spoke on condition of anonymity.