All eyes in the Tokyo Stock Exchange were on the money market on Saturday, the first day since 1933 when the Japanese yen was allowed to float, and theoretically find its own level against the dollar.
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Background: All eyes in the Tokyo Stock Exchange were on the money market on Saturday, the first day since 1933 when the Japanese yen was allowed to float, and theoretically find its own level against the dollar.
In fact the Bank of Japan intervened to support the dollar, and only a limited re-valuation of just over 5 1/4 per cent was allowed.
This produced a return of some confidence. Companies in the textile, motor and electronics industries, with their reliance on exports, were still feeling the pinch, but the market closed a little higher than on Friday.
The question for Monday is whether the Government will relax its controls, to see where the yen does stand, or will it keep buying dollars, which would attract another rush of speculation, and leave Japan just about where it was before the announcement to 'float' the yen.