Dollar Falls, Stocks Rebound
TOKYO (AP) _ The dollar fell today against the Japanese yen after rising for four consecutive trading days, while share prices rebounded on the Tokyo Stock Exchange.
The dollar closed at 133.42 yen, down 0.93 yen from Tuesday’s close of 134.35 yen. It opened at 133.35 yen and ranged between 133.02 and 133.67 yen. It had gained 5.45 yen in the previous four trading days.
About $9.94 billion changed hands in today’s spot trading, compared with $12.73 billion Tuesday.
Traders said the dollar recovered somewhat from its low start after U.S. and British officials said they could not confirm a news report that Iraq might be ready to withdraw from most of Kuwait. War fears tend to encourage buying of the dollar, seen as a safe haven in times of trouble.
Sky Television, a British station, reported Tuesday that Iraqi President Saddam Hussein was considering a possible withdrawal from Kuwait provided Iraq were allowed to keep the Rumailah oil field.
The Nikkei Stock Average of 225 selected issues, which had shed 863.38 points on Tuesday, climbed 331.11 points, or 1.51 percent, closing at 22,193.72. A total of 350 million shares were traded on the first section, up from 250 million the previous day.
Shares first rose broadly after the report on Iraq indicated the Persian Gulf situation might take a favorable turn, securities dealers said.
The yen’s rise and higher bond prices also encouraged stock purchases, although the index wa down as many as 235 points at one point, they said.
″But a wait-and-see mood basically remains in the market,″ partly because of uncertainties about the gulf crisis, said Takashi Morinaga of Okasan Securities.
In bond dealings, the price of the benchmark No. 119 10-year Japanese government bonds rose to points from Tuesday’s close of 86.65. Their yield fell to 7.225 percent from 7.350 percent.