Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (39215)	8/18/1999 9:01:00 AM
From: Rarebird	Respond to of 116753

Desperation in the air. Will it help past a few days? US intervention possible if US assets hurt-Merrill TOKYO, Aug 18 (Reuters) - A U.S.-Japan joint intervention to support the beleaguered dollar is possible when U.S. authorities become concerned about stability of its own asset markets, Merrill Lynch's senior currency strategist Neil MacKinnon said on Wednesday. MacKinnon said the Bank of Japan's previous intervention, a lone attempt to try to push the dollar higher against the yen, was not successful despite the bank's heavy spending of as much as $30 billion. ''Joint intervention by U.S. and Japanese authorities, I think, would be effective,'' he told Reuters Television. ''But for that to happen, American authorities would have to see clear evidence of continued deterioration in global asset prices. In particular, they have to see evidence that their own stock and bond markets have been severely destabilised by a sharp appreciation of the yen,'' he said. London-based MacKinnon is in Tokyo as part of an Asia-wide trip. Given the dollar's fall below the key chart support of 113.70 yen, verbal warning is likely to increase, and the dollar is highly likely to be protected from falling lower than 110 yen, or possibly 108 yen, MacKinnon said. But without joint dollar buying by U.S. and Japanese authorities, the dollar could plunge to 105 yen, he said. As for the euro, which has been renewing record lows against the yen this week, there is a downside room to around 117 yen, MacKinnon said. There is a possibility for the yen to make further gains against the euro after the European unit's recent fall to $1.05 level from $1.07/1.08 level. But the euro has a solid support at $1.0350, giving scope for some outperformance of the yen against the euro to around 117, he said. Mackinnon said, however, he expected the euro to recover in the near future when European economic data shows improvement. Anticipation of a European Central Bank (ECB) rate hike may also heighten after ECB members are back from summer holidays, he said.