Bank of Japan Sold Yen, Bought Dollars, Traders Say (Update2)
Dec. 11 (Bloomberg) -- The Bank of Japan sold yen and bought dollars in Tokyo, said traders at financial institutions that deal with the nation's central bank, marking the third consecutive day of currency sales.
Japan sold its currency at about 108.30 per dollar, said the traders, who spoke on condition they not be identified.
Against the dollar, the yen was at 108.26 at 10:50 a.m. in Tokyo, according to EBS, having traded at a three-year high of 106.74 on Wednesday. Japan's currency was also at 132.08 per euro, from 132.53.
``Japan's going to put up a hell of a fight'' to keep the currency from appreciating, said Greg McKenna, head of currency strategy at National Australia Bank Ltd., Asia's largest lender outside Japan by assets. ``Japan is still on a recovery track, so the yen is still going to go up.'' He predicted the dollar would fall to less than 100 yen in the next 12 months.
Finance Minister Sadakazu Tanigaki and Bank of Japan Governor Toshihiko Fukui have said they are concerned that a swift rise in the yen will hurt an economy pulling out of a 12- year slump by making its exports more expensive.
A Ministry of Finance official declined to comment on whether Japan sold its currency today. The ministry directs the central bank to buy or sell yen in the currency markets.
The Bank of Japan has sold a record 17.8 trillion yen ($164 billion) this year through Nov. 26, according to government figures.
The central bank may have sold as much as 1 trillion yen yesterday in an effort to stem the advance in the Japanese currency, the Nihon Keizai newspaper reported, citing ``market sources.''
Last Updated: December 10, 2003 20:58 EST |
