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To: pater tenebrarum who wrote (34255)	11/27/1999 12:06:00 AM
From: Don Green	Respond to of 99985

Dollar, Euro Fall Heavily Vs Yen In N.Y. Saturday, November 27, 1999 NEW YORK (Dow Jones)--The dollar fell three yen Friday from pre-Thanksgiving levels to hit a near four-year low against the Japanese currency, while the euro hit historical bottoms against both its major counterparts. With many participants taking a long weekend, market thinness contributed significantly to the day's volatile trading. In only a few minutes during the New York morning session, dollar/yen plunged about two-and-a-half yen to reach 101.52 yen, the pair's lowest level since Dec. 21, 1995. The dollar and euro were able to recoup some losses as trading wound down in New York, with traders going home around 1800 GMT in line with early closings for the equity and bond markets. The euro made a marked recovery against the dollar, less so versus the yen. Early Friday afternoon in New York, the dollar was trading at 101.58 yen, down very sharply from 104.23 yen late Thursday in London and from 104.53 yen late Wednesday in New York. The euro was buying $1.0161, down from $1.0197 late in London Thursday and from $1.0179 Wednesday in New York. Against the yen, the euro was at 103.30 yen, compared with 106.51 yen late in London Thursday. At one point or another Friday, the euro had fallen more than a cent against the dollar and four yen against the Japanese currency in a thinly traded, roller-coaster ride of a global session, bottoming out at $1.0070 and 101.50 yen. The yen reached a post-World-War-Two high when calculated against the Deutsche mark. Following through from its earlier surge against the euro, the yen pushed the dollar below key support at 103.20 yen - the previous low hit on Sept. 15 this year - to run into stop-loss triggered selling, plunging sharply to its intraday low of 101.52 yen. The yen's momentum was driven initially by the euro's fall below 105.00 yen overnight, a move which in turn took the euro down to an all-time low of $1.0070 against the dollar. The euro's decline began Wednesday, when markets took badly to news that the German government said it would bail out ailing construction group Holzmann, and after it had interfered in the proposed takeover of Mannesmann AG by Vodafone-Airtouch. The euro wasn't helped by comments Thursday from ECB Executive Board Member Eugenio Domingo Solans who said the ECB "rules out formal or informal intervention" on behalf of the euro. With the markets initially focusing on the possibility of a break below parity to the dollar for the European currency, attention later turned to the yen in New York trading. But traders were quick to point out the euro's return from the brink of parity against the dollar was on very light volume. "The market has been extremely erratic on almost no volume - the euro was technically and fundamentally oversold, but these moves are taken place on such little volume that it's impossible to guess what it's going to do next," said one trader with a U.S. bank in London. The thin, post-Thanksgiving market conditions seem to have exaggerated price movements. And, although comments from both European and Japanese officials have raised speculation over the possibility of yen-restrictive, or euro-supportive intervention, contradictions in some of the official commentary has emboldened yen-bulls, traders noted. Nonetheless, traders said they are at a loss to find a fundamental reason to justify the yen's continued gains.

To: pater tenebrarum who wrote (34255)	11/27/1999 4:51:00 PM
From: Don Green	Respond to of 99985

ASEAN Backs Sakakibara As IMF Head: Estrada Sunday, November 28, 1999 MANILA (Nikkei)--Phillippine President Joseph Estrada said Saturday that the Association of Southeast Asian Nations will support Japan's bid to appoint former vice-finance minister for international affairs Eisuke Sakakibara as the next managing director of the International Monetary Fund. The president was quoted by a Japanese Foreign Ministry official as telling visiting Prime Minister Keizo Obuchi that the 10 ASEAN member states had confirmed their joint backing for Sakakibara's nomination at their meeting of finance ministers on Friday. "We support Dr. Sakakibara, or Mr. Yen," Estrada said, using the Japanese official's nickname. ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Estrada's support was in response to Obuchi's request for the Philippine's support for the Japanese government's campaign to push Sakakibara to succeed Michel Camdessus in the top job at the IMF. Camdessus has said he intends to step down next year. In a 20-minute meeting, Obuchi also pledged that Japan will provide 39.5 billion yen in soft loans for the Southeast Asian country. The money will go toward expanding elevated rail networks in Manila, repairing dikes in flood-stricken areas and building container terminals in Mindanao. (The Nihon Keizai Shimbun Sunday edition)

To: pater tenebrarum who wrote (34255)	11/27/1999 4:55:00 PM
From: Don Green	Respond to of 99985

Analysts Expect Further Yen Ascent Saturday, November 27, 1999 TOKYO (Nikkei)--The yen will likely breach the 100 yen to the dollar level for the first time in four years as investors are buying the Japanese currency on the improved economic outlook, market observers said. Market participants are also watching how Japan's equity market will react Monday to the yen's spike in New York on Friday, where the dollar fell below 102 yen. But the Ministry of Finance and the Bank of Japan will likely intervene in the market because the yen's sharp ascent could dampen business and consumer sentiment, analysts said. Generous supplementary spending planned by the government, together with the improved signs for an economic recovery, have fueled expectations for higher Japanese long-term interest rates, said Masaru Yoshitomi, dean of the Asian Development Bank Institute. "The prospect of a narrower gap between U.S. and Japanese interest rates is pushing up the yen against the dollar," he said. "Speculation about the sale of euro bonds by Japanese institutional investors fueled yen buying in New York," said an analyst with the Tokyo branch of Bank One Corp. Trading was thin in New York on Friday, which was sandwiched between Thanksgiving Day and the weekend, and the market was unable to absorb all sell orders for the euro. The yen was bought both against the dollar and the European currency. With hedge funds reducing their forex positions out of fears that market turmoil could be caused by the millennium computer bug, trading in currency markets is now driven primarily by "real" demand associated with service and goods trade rather than by speculation. Rumors of euro bond sales spread when Japanese exporters and institutional investors sold dollars and euro, market observers said. "The dollar is set to slide below 100 yen," said Akihiko Kagawa, deputy director at Bank of Tokyo-Mitsubishi's forex division. The view is echoed by other market observers who say the yen will rise to that level unless Japanese authorities intervene. Combined pretax profits of listed firms (excluding those in the financial sector) are expected to gain in the year through March 2000 for the first time in three years, but earnings could be revised down if the psychological 100-yen barrier is breached. Yoshitomi of the Asian Development Bank Institute said Japanese manufacturers can't turn a profit if the dollar slips below 105 yen. (The Nihon Keizai Shimbun Sunday edition)