In hectic trading on the Japanese money market in Tuesday (13 June), the dollar sank at one point to 216.20 yen-its lowest price over.
In hectic trading on the Japanese money market in Tuesday (13 June), the dollar sank at one point to 216.20 yen-its lowest price over. Many dealers said they expected it to fall even further. The previous low was 218 yen, set last April.
SYNOPSIS: The latest fall against the yen on the Tokyo Money Exchange began earlier in the month, American experts said it was triggered mainly by continuing signs of a huge Japanese trade surplus with the United States. However Prime Minister Takeo Fukuda told newsmen that the sharp fall was caused by the dollar's weakness rather than the Japanese currency's strength. He pointed out that the dollar has also fallen against the West German mark and the Swiss franc.
Although the dollar touched 216.20, at recovered slightly in the course of the day's trading to close at 217.35. Dealers said the Tokyo trading trend reflected the dollar's weakness against the yen in New York overnight.
During the day the Bank of Japan did not intervene to curb the slump of the dollar. The next day (14 June) the dollar traded well above the rock bottom level, but it still closed down on Monday, at 217 yen.