Dollar drops below 113 yen in Tokyo

Dollar drops below 113 yen in Tokyo

TOKYO (AFP): The dollar temporarily plunged below 113 yen here yesterday amid caution on the eve of the release of Japanese trade data, dealers said.

"Even if the surplus is within the expected range, it will likely trigger renewed buying of the yen," a credit bank dealer said.

The U.S. currency dropped to as low as 112.93 yen in late trading on concern about Japan's trade surplus ahead of the upcoming summit of the Group of Seven (G7) members with Russia in Denver in late June, dealers said.

But the unit rebounded slightly in late trading on short- covering, dealers added.

At 5 p.m. (0800 GMT), the dollar traded at 113.32-35 yen, compared with 113.26 yen earlier in the day and 113.20 yen in New York late Monday.

It was quoted at 1.7350-53 marks, against 1.7310 earlier and 1.7315 in New York Monday.

In Singapore, the dollar closed higher against the yen in Singapore trading Tuesday after recovering from aggressive selling, dealers said.

Investors had sold the U.S. currency against the yen as they sought to hedge their positions ahead of the release of Japanese trade data, dealers said.

The greenback, however, bounced back to close higher at 113.45 yen from an opening quote of 113.30. It was higher at 1.7365 marks from 1.7312 in technical-driven trading, a dealer with Banque Nationale de Paris said.

In Southeast Asian regional play, the greenback ended slightly higher at 1. 4270 Singapore dollars from the previous day's close of 1.4255 and 2,5150 Malaysian ringgit from 2.5148.

It was lower at 22.60 Thai baht from 24.35 and unchanged at 2.,428 Indonesian rupiah.

In London, the mark fell early yesterday after European leaders reached agreement on the ground rules for the single European currency, which analysts said might weaken the future euro currency.

The mark fell to 978 lire from 981 late on Monday. It was being traded at 3.3725 French francs from 3.3728.

The dollar was being traded at 1.7367 marks from 1.7301 late on Monday, 113.39 yen from 113.43, 1.4478 Swiss francs from 1.4405, and 5.8591 French francs from 5.8377.

The mark was being traded at 3.3725 French francs from 3.3728, 978 lire from 981, 84.38 pesetas from 84.46, 0.8333 Swiss francs from 0.8325, and 65. 31 yen from 65.52.

Sterling was at US$1.6350 from $1.6367, 2.8382 marks from 2.8320, 185.39 yen from 185.67, 2.3661 Swiss francs from 2.3577, and 9.5773 French francs from 9.5546.

Gold was worth $341.55 from $342.15.

The British three-month interbank rate was unchanged at 6.687 percent and the three-month Eurodollar rate held at 5.562 percent.