The dollar was stuck against the yen in Tokyo Tuesday, February 13, ahead of congressional testimony by US Federal Reserve chairman Alan Greenspan about the faltering US economy, a dealer said. “Investors are reluctant to take any action ahead of Greenspan's testimony" later in the day, said Bank of Tokyo-Mitsubishi dealer Kiyoshi Kuzuhara.
At 5:00 pm (0800 GMT), the dollar traded at 117.21-24 yen, against 117.39 yen in New York late Monday.
”Amid mounting concern about a slowdown in the US economy, investors will pay very close attention to what the chairman has to say," Kuzuhara said.
The euro was quoted at $0.9266-69, against $0.9314 in New York late Monday. Against the yen, the euro was quoted at 108.50, compared with 109.42 in New York Monday afternoon.
Financial markets in Tokyo were closed Monday for a public holiday.
"Investors sold the euro in the absence of any particular lead to buy the currency," Fuji Bank dealer Yoshiyasu Naruse said. But the euro would not stray far from $0.93 before Greenspan's testimony, analysis firm IDEAglobal.com said in Singapore.
"Markets will focus on interpreting his assessment of the current economy and his remarks on the prospects for the economy in the second half to determine what further (monetary) easing might be necessary," it said. Investors paid little attention to the Bank of Japan's announcement Friday that it was cutting its discount lending rate for the first time since September 1995, to a record low 0.35 percent from 0.5 percent.
The cut in the largely symbolic rate took effect Tuesday. “The impact on the market was marginal since the rate cut was totally symbolic," Kuzuhara said. "The BoJ rate cut is not a lead anymore. Everyone is interested in Greenspan's testimony," he said. —(AFP)
© Agence France Presse 2000
© 2001 Mena Report (www.menareport.com)
