LONDON/NEW YORK, 25 September 2003 — The dollar held its own against the yen in late trading in London yesterday, with dealers on the alert for possible intervention by Japanese monetary authorities to stem the rise of their currency. The euro, meanwhile, edged up against the greenback, trading at 1.1474 dollars against 1.1443 late on Tuesday.
After dipping below 111 yen on Tuesday, the dollar recovered was trading at a 111.71 yen after 111.45 earlier in the day and 112.30 late on Tuesday. “The markets are wary of the possibility of Bank of Japan intervention, possibly as early as this Friday,” said David Mann, forex strategist at Standard Chartered.
Wall Street shares skidded lower in morning trade yesterday as a jump in oil prices and a profit warning from media giant Viacom raised fears about the pace of the US economic recovery. The Dow Jones industrials fell 31.72 points (0.33 percent) to 9,544.32 and the NASDAQ shed 11.17 points (0.59 percent) to 1,890.55 at 1530 GMT.
Oil prices spiked higher after a surprise decision by the Organization of Petroleum Exporting Countries to cut production among its members in an effort to keep prices from falling.
Asian share prices closed higher, with stand out performances in Hong Kong, Singapore, Jakarta and India making up for only a modest showing in Tokyo, where investors continue to fret over the impact on exports of a higher yen, dealers said.
Hong Kong led the way, gaining 3.21 percent as foreign funds poured into the market on the view that the territory’s economy may finally be on the mend. Singapore rose 2.88 percent, with the market picking up steam through the day once investors broke through the 1,600 points barrier on the back of Wall Street’s overnight gains.
Japanese share prices edged up 0.25 percent as concerns over the possible impact on exports of a higher yen eased slightly, with domestic-demand linked companies continuing to do well, dealers said. The Tokyo Stock Exchange’s benchmark Nikkei-225 index closed up 27.19 points at 10,502.29 after plunging 4.24 percent on Monday as the yen’s surge against the dollar triggered fears it would hurt the profits of Japanese exporters and even undercut the economic recovery under way.
