5 November 2001, 08:55 Dollar firmer against yen in Tokyo morning deals
TOKYO, Nov. 5 (Kyodo) - The U.S. dollar firmed up slightly
against the yen Monday morning in Tokyo after the market drained of
dollar-selling factors for the time being.
At midday, the dollar was quoted at 121.80-82 yen compared with
121.60-70 yen 5 p.m. Friday in New York and 121.50-52 yen late
Friday in Tokyo. The dollar moved between 121.61 yen and 121.88 yen
during the morning.
Dealers said last week's dollar-selling factors faded from the
market, including the worsened U.S. unemployment rate for October
released last Friday.
The October U.S. jobless rate climbed to 5.4% for the highest in
nearly five years, triggered a sell-off of the U.S. currency to
121.40 yen at one point in New York trading Friday. But it later
trimmed its lost ground, supported by firm U.S. stocks.
"The dollar was on a buying trend led by foreign players this
morning," said Yuiitsu Nagata, dealer at Toyo Trust & Banking Co.
Euro buying against the yen in early deals also helped to shore
up the dollar against the yen, he added.
Dealers said the market is now waiting for the outcome of the
U.S. Federal Reserve's policy-setting Federal Open Market Committee
(FOMC) meeting Tuesday.
They said the market has already factored out a 0.25 percentage
point cut in the federal funds target rate.
If the FOMC surprises the market by a 0.50-point reduction, it
will spur a rise of the dollar, together with the recent steady
moves of U.S. stocks, they said.
Toyo Trust's Nagata said, however, dollar-yen trading will see
few drastic moves during Tokyo trading. Players will remain
cautious before the FOMC's decision, he said.
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