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To: Lucretius who wrote (5878)	12/7/1998 8:57:00 PM
From: The Ox	Read Replies (2) \| Respond to of 14427

Mon, 7 Dec 1998 Dollar Climbs For Third Day vs Yen as U.S. Equity Markets Continue to Gain Dollar Climbs Against Yen for 3rd Day on Rising U.S. Stocks Tokyo, Dec. 8 (Bloomberg) -- The dollar rose for a third day against the yen as U.S. stocks have rebounded since Friday, boosting demand for dollars to buy securities, traders said. The Dow Jones Industrial Average, which fell 3.4 percent last week, has risen since Friday to climb 0.6 percent yesterday. ''The currency market has been following the Dow,'' said Hiroshi Sakuma, a foreign exchange manager at Barclays Bank Plc. ''U.S. stocks are strong, and Christmas holiday sales turn out pretty strong, too. With brisk consumer spending, the dollar is poised to rise.'' The dollar was quoted at 120.30 yen, up from 120.05 yen in late New York trading yesterday. It was quoted at 1.6806 marks, up from 1.6803 marks in New York. Sakuma said the dollar is likely to trade between 119.80 yen and 121.50 yen today. This month, it will probably trade between 117 yen and 127 yen, he added. The U.S. currency has followed U.S. stocks. The dollar fell to a one-month low of 117.32 yen early Friday as the Dow plunged on concern Brazil isn't fixing its slumping economy. The dollar then rebounded after the benchmark stock index rose on a report Friday the U.S. added more jobs than expected in November, pushing unemployment down to a six-month low of 4.4 percent. ''The main focus in the currency market remains on U.S. stocks,'' said Tetsu Aikawa, a foreign exchange manager at Sanwa Bank Ltd. If U.S. stocks climb further today, that will help buoy the dollar, he said. The dollar is likely to trade between 119.75 yen and 120.75 yen today, Aikawa said. Clear Contrast The stronger-than-expected U.S. employment report has also fanned optimism that the current economic expansion -- in its 93rd month -- isn't about to end. The U.S. economy grew at a 3.9 percent annual pace during the July-September period. By comparison, Japan's economy contracted at a 2.6 percent rate in the same quarter. The Japanese government said today that the economy is in ''a very severe situation,'' leaving its assessment unchanged from November in its monthly economic report. With the economy forecast to contract at least 1.8 percent in the year ending March 31, the Bank of Japan won't raise interest rates from record low levels anytime soon, analysts said. That prompts Japanese to sell yen to invest abroad for higher returns. Japan's target overnight loan rate between banks is 0.25 percent. The comparable rate in the U.S. is 4.75 percent. ''During the bonus season, Japanese are attracted to overseas investment,'' said Barclays Bank's Sakuma. In other trading, the dollar was quoted at 1.3779 Swiss francs, down from 1.3780 Swiss francs in late New York trading yesterday. The British pound was quoted at $1.6514, down from $1.6518 in New York. The mark was quoted at 71.60, up from 71.31 yen in New York.