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 (15246)	8/3/1998 9:41:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116762

Dollar Falls After Kuroda Suggests Japan Ready to Take Action to Boost Yen Dollar Falls From 7-Wk High as Kuroda Says Japan Ready to Act Tokyo, Aug. 4 (Bloomberg) -- The dollar fell, after rising above 146 yen, after Haruhiko Kuroda, director-general of the International Bureau of Japan's Finance Ministry, said Japan is ready to sell dollars to stem the yen's decline. ''There's no doubt that the yen is excessively weak,'' Kuroda said, adding: ''Japan's ready to take appropriate action on the yen when necessary'' because the yen's weakness isn't good for Japan, Asia and the rest of the world. ''Kuroda's comments prompted investors to sell dollars as they were afraid that the dollar had climbed too high, and the Bank of Japan may intervene,'' said Tetsuhisa Hayashi, a foreign exchange manager at Bank of Tokyo Mitsubishi Ltd. Earlier, the dollar had risen above 146 yen for the first time in seven weeks amid a gloomy outlook for the Japanese economy. The dollar fell as low as 144.62 yen. It was recently quoted at 144.70 yen, down from 145.52 yen in late New York trading yesterday. It was quoted at 1.784 marks, little changed. The yen's decline would raise concern that China may be forced to devalue its currency, the yuan, traders said. A drop in the yuan would compound Asia's problems, and could spark currency devaluations throughout the region as other nations try to compete with Chinese and Japanese exports. Poor Rating Many traders said the dollar will likely to resume its climb against the yen amid concerns the new Prime Minister Keizo Obuchi won't take speedy action to bring the economy out of its worst recession in decades. Obuchi is supported by only 25.1 percent of the public, according to a nationwide poll of 3,000 voters taken recently by Nikkei Research, a unit of the Nihon Keizi newspaper. ''Obuchi seems really slow in action to put his pledges into action,'' said Norimitsu Takada, a senior trader at National Westminster Bank Plc. ''People may want to buy the dollar if it dips to seek higher returns abroad because there's massive gap in interest rates between the U.S. and Japan.'' Japan's discount rate, at which the Bank of Japan lends money overnight to commercial banks, is a record low 0.5 percent. By comparison, the U.S. federal funds rate on overnight loans between banks is 5.5 percent. The dollar got a lift after Taichi Sakaiya, the new head of Japan's Economic Planning Agency, said the EPA's forecast of 1.9 percent growth is ''unachievable.'' Sakaiya's comments on a Sunday TV program that the economy might even shrink by 0.5 percent this year prompted traders to sell yen for dollars, traders said. Meanwhile, Standard & Poor's, the U.S. credit rating agency, said it lowered the credit rating on Nippon Life Insurance Co. and three other insurers to reflect ''a deterioration in the companies' operating environment, stemming from depressed investment conditions and the recessed economy in Japan.'' ''Looking at the floundering economy in Japan, we can find no reason to buy the yen,'' said Takada. ''I think the dollar will continue to climb.'' Tokyo-Mitsubishi Bank's Hayashi said, ''The dollar will likely trade between 144.50 yen and 145.50 yen today.'' In other trading, the dollar was 1.5015 Swiss francs, up from 1.5003 Swiss francs in late New York trading yesterday. The British pound was quoted at $1.6264, down from $1.6273 in New York. The mark was quoted at 81.41 yen, down from 81.55 yen in New York. bloomberg.com@@a8x02AcAXePnGTr9/news2.cgi?T=news2_ft_topww.ht&s=568580032