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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: j g cordes who wrote (14340)	9/10/1998 12:05:00 AM
From: PaulB	Read Replies (1) \| Respond to of 120523

A little insight to the Asian view of things.... Paul (COMTEX) B: Dollar slides further against yen in morning B: Dollar slides further against yen in morning TOKYO, Sept. 10 (Kyodo) -- The U.S. dollar moved lower against the yen Thursday morning in Tokyo due to fears the United States will follow Japan's lead in lowering interest rates. At noon, the dollar was quoted at 134.82-85 yen, down from 135.15-20 yen at 9 a.m., and down from 136.35-45 yen late Wednesday in New York. During the morning, the U.S. currency moved between 134.57 yen and 136.20 yen. The Bank of Japan announced Wednesday evening it will guide the key overnight call money rate, or the rate at which banks lend each other money, down from the present level around 0.50% to around 0.25%, to help prevent a deflationary spiral. Dealers fear the U.S. may cut rates too, in order to prevent the U.S.-Japan interest rate differential from widening, which would affect the dollar negatively. Dealers said the market is pessimistic about the dollar because in the United States, special prosecutor Kenneth Starr submitted his final report to Congress on the conduct of President Bill Clinton. Any uncertainty in U.S. politics is seen as a negative factor for the dollar. They said any potential rise of the dollar will be capped by fears of yen-buying intervention around 138 yen, citing comments made Thursday morning by Haruhiko Kuroda, head of the Finance Ministry's International Bureau, who repeated Japan is ready to intervene at any time. ''The currency market was nervous today,'' said Hiroshi Ogata, a currency dealer at the National Australia Bank in Tokyo. ''After yesterday's large swings the market can't find an exact direction.'' The dollar traded through an almost eight-yen range in the last 24 hours from a low of 130.45 yen in Tokyo on Wednesday morning to a high of 138.30 yen in London overnight after the Bank of Japan's (BOJ) rate cut announcement. The head of the Economic Planning Agency, Taichi Sakaiya, who had said earlier in the week that Japan is on the verge of entering a deflationary spiral, reportedly said Wednesday morning that the rate cut may have come too late to have an effect on the economy. National Australia Bank's Ogata said, ''It is just a rate cut. None of the fundamentals of the Japanese economy have changed.'' Dealers said they are skeptical that even lower interest rates in interbank dealings will have a significant effect on the economy, as the earlier historically low rates had failed to do so. Against the German currency, the dollar was traded at 1.7042-7045 marks at noon in Tokyo, down from 1.7339-7342 marks late Wednesday in New York. The mark was quoted at 79.06-21 yen at noon in Tokyo, up from 76.89-77.00 yen late Wednesday in Tokyo. -0- * end of story *