5 January 2001, 10:34  The euro continued to plough higher early against the dollar and the yen

The euro continued to plough higher early against the dollar and the yenFriday in a continuation of the late Thursday session in New York. "Euro-yen has climbed past Y110.00 and euro-dollar easily went throughresistance at $0.9520 in Sydney," said a night trader in New York. Headded that for euro-dollar, some resistance is expected next at 0.9575while technically for euro-yen there are no key points on the upside.Overnight, euro-dollar advanced to $0.9510 from $0.9300 and euro-yensoared to Y109.85 from Y106.00. According to dealers, dollar-yen istrading on the heels of euro-yen. "As long as euro-yen is on a roll, dollar-yen is going to be well supported," said a corporate trader at a U.S. bankin Singapore. He said that the next resistance level for dollar-yen is atY116.00, adding that helping in dollar-yen's recent advance is thenotable absence of many natural sellers such as Japanese exporters.The strength of euro-yen dragged dollar-yen past resistance at Y115.10and Y115.50 overnight from under Y114.00. "There are also two bits ofnews out there supporting dollar-yen this morning," said an analyst at aSingapore bank. The first and most important is a local newspaper articlewhich said that Toyota Motor Corporation plans to manage a three trillionyen surplus in dollars, euros and other currencies as well as yen and thesecond is an unconfirmed rumour that Sony Corportion plans to buy Applycomputer, she said. She added that the Toyota news is a break for thenormal practice of just holding surpluses in yen by Japanese companiesand may set a precedence for other export companies.

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