31 October 2001, 08:53 Dollar at standstill against yen in Tokyo morning deals
TOKYO, Oct. 31 (Kyodo) - The U.S. dollar reached a standstill
against the yen in Tokyo on Wednesday morning as players held their
breath ahead of the release of crucial U.S. gross domestic product
(GDP) data later in the day.
At midday, the dollar traded at 121.92-95 yen compared with
Tuesday's 5 p.m. quotes at 121.90-122.00 yen in New York and
121.80-82 yen in Tokyo.
The U.S. currency moved between 121.85 yen and 122.22 yen during
the morning.
"There are zero factors to move the market during Tokyo trading
time today as everybody is waiting for the U.S. GDP," said
Hideyuki Tsukamoto, a foreign exchange manager at Fuji Bank. "The
dollar will move within a narrow range around 122 yen throughout
Tokyo time."
With the September terrorist attacks in the United States and
the subsequent air campaign in Afghanistan raising concerns over
the course of the U.S. economy, the eyes of financial markets are
locked on the U.S. July-September economic growth, due out
Wednesday night Japan time.
U.S. GDP, which has been indicating quarterly growth for more
than 10 years, is widely anticipated to show a negative reading for
the third quarter of this year.
Tsukamoto said currency market players have started to factor in
sub-zero growth of the world's largest economy since Friday's New
York trading hours, sending the dollar lower against the yen and
the euro.
"The dollar may rise if the GDP is around minus 1%, which is a
mean figure for market expectations, because some people expect an
economic contraction of a much wider scale," he said.
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