Wed, 10 Aug 1994

Greenback rises sharply on most major exchanges

TOKYO (AFP): The dollar gained ground sharply on the Tokyo foreign exchange market yesterday, reflecting a surge overseas.

It closed at 101.43 yen, up 0.99 yen from the previous day's finish of 100.44 yen here but lower than 101.48 yen quoted in New York late Monday.

After opening at 101.42 yen, the greenback moved between 101.29 yen and 101.47 yen here yesterday.

Spot turnover increased from the previous day's US$3.54 billion to $4.602 billion.

It was the first time here in about one-and-a-half months that the dollar reached the 101 yen level.

Investors bought dollars on prospects of an interest rate hike in the United States and the reported poor health of Kim Jong-Il, heir-apparent to the late North Korean president Kim Il-Sung, dealers said.

The mark closed at 1.5853 to the dollar here yesterday, against 1.5771 the previous day.

In London, the dollar rose to 1.5860 marks from 1.5795 at the Monday close. Against the Japanese currency, the greenback was up to 101.43 yen from 101.25.

Among European currencies, the mark rose through the 1,000 lira mark to 1,000.65 lira from 998.50 at the Monday close, and advanced to 3.4260 French francs from 3.4235 and to 3.9405 Danish kroner from 3.9345.

The pound was stable against the mark after reports in the Times that the Governor of the Bank of England, Eddie George, had no plans to call for a rise in interest rates at his next meeting with Chancellor of the Exchequer Kenneth Clarke on Sept. 7.

By mid-morning, the dollar was trading at 1.5860 marks from 1.5795 at the Monday close, 101.43 yen from 101.25, 1.3370 Swiss francs (1.3320) and at 5.4338 French francs from 5.4138.

Sterling was trading at $1.5370 from $1.5417, at 2.4369 marks from 2.4351, at 155.89 yen from 156.10, at 2.0550 Swiss francs from 2.0528 and at 8.3517 French francs from 8.3464. In New York, the dollar rose against most major currencies on Monday on a day of quiet trading dominated by technical factors.

Around 4:45 p.m. (2045 GMT), the dollar was at 1.5828 German marks, down from 1.5845 at midday and up from 1.5800 Friday. Against the yen, the dollar was at 101.48 from 101.75 at midday but up from 100.20 Friday.

The dollar also gained ground against most major European currencies, at 5.4195 French francs down from 5.4085 Friday, at 1.3350 Swiss francs down from 1.3333 and at 0.6494 pounds sterling down from 0.6487.

Gold, in Hong Kong closed lower yesterday at $377.50-$377.90 an ounce, against the previous day's closing rate of $377.75- $378.15. The market opened at $377.00-$377.40.

In London, gold dropped to $377.40 per ounce from $378.05.

In New York, gold lost 60 cents from late Friday to hit $376.70.