Dollar Falls Fourth Consecutive Trading Day, Stocks Close Lower
TOKYO (AP) _ The dollar fell against the Japanese yen for the fourth consecutive trading day today, hitting a nearly eight-month low, while Tokyo share prices dropped in light trading.
The dollar closed at 129.53 yen, down 0.67 percent from Friday’s close and also below its New York finish of 129.90 yen on Friday. The dollar has now fallen a total of 3.65 yen in four trading days.
It was the dollar’s lowest closing in Tokyo since 128.70 yen on Feb. 13.
After opening at 129.15 yen, the day’s low, it moved as high as 129.73 yen. Spot trading totaled $10.04 billion, down from Friday’s $15.27 billion.
Currency traders said the dollar was hurt by expectations that finance officials from the Group of Seven major industrialized nations may agree at a weekend meeting in Thailand to allow the yen to appreciate.
″The yen is poised to gain further momentum against the dollar toward the G-7 meeting in Bangkok,″ said Takashi Mizuguchi, a dealer with Sanwa Bank.
The G-7 comprises Japan, the United States, Britain, Germany, France, Italy and Canada.
The dollar’s late gains in Tokyo today resulted from traders covering short positions, Mizuguchi said.
On the stock exchange, the 225-issue Nikkei Stock Average fell 266.07 points, or 1.08 percent, closing at 24,330.83. On Friday, the average fell 114.54 points, or 0.46 percent.
Volume on the first section was estimated at 300 million shares, down from Friday’s 480 million shares. Declining issues outnumbered gainers 654 to 332, with 156 unchanged.
The Tokyo Stock Price Index closed at 1,872.38 points, down 10.94 points, or 0.58 percent. The TOPIX rose 0.58 points, or 0.03 percent, on Friday.
Yukio Takahashi, an analyst with Wako Securities, said the decline was a technical adjustment after rapid rises in the past month.
The Nikkei average rose nearly 600 points in September.
Some investors retreated to the sidelines to see what penalties the Finance Ministry plans against Nomura Securities following a hearing Monday for the world’s largest brokerage, Takahashi added.
In the hearing at the ministry, Hideo Sakamaki, Nomura president, admitted that the brokerage improperly promoted shares of Tokyu Corp., a major Japanese railroad company, in October 1989 in violation of a ministry order.
Ministry officials said they would impose penalties against Nomura this week under a law that prohibits large-scale dealings in a single issue.
The benchmark No. 129 10-year Japanese government bonds closed at 102.83 points, down from Friday’s 102.86-point finish. Their yield rose to 5.895 percent from 5.890 percent.