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Dollar Up, Japanese Stocks Higher

July 26, 1999

TOKYO (AP) _ The U.S. dollar edged higher against the yen in morning trading Monday, while Japanese stocks rebounded from Friday’s decline.

The dollar bought 116.92 yen as of midmorning, up 0.06 yen from late Friday in Tokyo and also above its late New York level of 116.55 yen on Friday.

The benchmark 225-issue Nikkei Stock Average wiped away most of Friday’s declines, ending the morning trading session up 128.78 points, or 0.73 percent, at 17,663.32. On Friday, the average closed down 195.90 points, or 1.10 percent.

The dollar added to last week’s gains on speculative buying by dealers aiming to capitalize on any further dollar-supportive intervention by Japan’s central bank.

The Bank of Japan has intervened in recent weeks to stem the yen’s rapid rise against the greenback as part of Japanese financial authorities’ attempts to help the nation’s fledging economic recovery.

Gains in the yen make Japanese exports more costly abroad, and thus less competitive, while cutting the value of foreign revenue in yen terms.

In other currencies, the euro was traded at 123.42 yen, up from 122.64 yen late Friday in Tokyo.

On the stock market, share prices rose as investors looked for bargains following a sharp drop in the Nikkei late last week.

Electronics giant Sony Corp. was among the early gainers as investors used last week’s 10 percent fall in share price as a chance to increase their holdings in one of the country’s top manufacturers and exporters.

The broader Tokyo Stock Price Index of all issues listed on the first section was up 9.05 points, or 0.63 percent, to 1,445.54. The TOPIX closed down 22.53 points, or 1.54 percent, on Friday.

The yield on the benchmark No. 214 10-year Japanese government bond traded unchanged at 1.685 percent. It cost 100.90 yen.

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