22 October 2001, 09:50 Dollar gains slightly against yen in Tokyo morning deals
TOKYO, Oct. 22 (Kyodo) - The U.S. dollar gained slightly against
the yen in Tokyo on Monday morning compared with its late levels in
New York on Friday in cautious trading.
At midday, the dollar traded at 121.43-45 yen, compared with the
5 p.m. quotes of 121.15-25 yen in New York and 121.17-20 yen in
Tokyo on Friday.
The U.S. currency moved between 121.20 yen and 121.49 yen during
the morning.
Dealers said some dollar-buying was seen among Japanese
importers, but that the market was generally thin, with nothing to
inspire trading.
The Asia-Pacific Economic Cooperation forum's two-day summit in
Shanghai which ended Sunday with an agreement to counter terrorism,
provided no sense of direction, dealers said.
"The meeting had no surprises," said Nobuaki Kubo, manager of
foreign exchange at Daiwa Bank.
Dealers said the market is still worried about terrorism in the
United States, particularly over the anthrax scare following the
Sept. 11 attacks in New York and Washington.
On the other hand, there is a sense of optimism in the market
that the U.S. military operations in Afghanistan could end earlier
than expected, dealers said.
"There is speculation that U.S. commandos swiftly began their
ground assault in Afghanistan and withdrew just as quickly.
Speculation that military attacks will be short-lived will be
beneficial for the dollar," Kubo said.
A dealer at another Japanese commercial bank said some people
are buying back the dollar on hopes for the U.S. economy.
"Hopes have been raised by the fiscal and monetary policies
that the U.S. has taken in succession," he said.
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