Dollar at record low since 1995, in JP Morgan buy
The dollar nosedived to its lowest levels since 1995 in Asian trading Monday, falling to below 96 yen, as investors reacted nervously.
By Agencies |
TOKYO: The dollar nosedived to its lowest levels in 12 1/2 years in Asian trading Monday, falling to below 96 yen, as investors reacted nervously to news that JP Morgan Chase had bought rival investment bank Bear Stearns.
The move, aimed at averting a bankruptcy, sparked renewed worries among traders about the extent of the credit crisis, sending Asian stock markets tumbling.
The dollar was also hit by word that the Federal Reserve on Sunday cut its discount rate, or its lending rate to financial institutions, by a quarter point to 3.25 per cent.
The dollar fell to 95.72 yen, its lowest point since August 1995, in morning trading in Tokyo before recovering to 96.76 in afternoon trading. The dollar finished in New York trading on Friday at 99.17 yen. It broke below 100 yen just last Thursday.
The euro also rose to a record against the dollar, climbing as high as $1.5903.
Japanese officials quickly called for calm in the currency markets, but did not announce any plans for intervention to shore up the greenback by buying up dollars.
``Excessive fluctuation is never favorable for the Japanese and world economy,'' Chief Cabinet Secretary Nobutaka Machimura said. ``We are concerned about the current situation with currencies fluctuating too much.''
The weak dollar hurts the country's key exporters by eroding their overseas earnings when repatriated to Japan.
The move, aimed at averting a bankruptcy, sparked renewed worries among traders about the extent of the credit crisis, sending Asian stock markets tumbling.
The dollar was also hit by word that the Federal Reserve on Sunday cut its discount rate, or its lending rate to financial institutions, by a quarter point to 3.25 per cent.
The dollar fell to 95.72 yen, its lowest point since August 1995, in morning trading in Tokyo before recovering to 96.76 in afternoon trading. The dollar finished in New York trading on Friday at 99.17 yen. It broke below 100 yen just last Thursday.
The euro also rose to a record against the dollar, climbing as high as $1.5903.
Japanese officials quickly called for calm in the currency markets, but did not announce any plans for intervention to shore up the greenback by buying up dollars.
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``Excessive fluctuation is never favorable for the Japanese and world economy,'' Chief Cabinet Secretary Nobutaka Machimura said. ``We are concerned about the current situation with currencies fluctuating too much.''
The weak dollar hurts the country's key exporters by eroding their overseas earnings when repatriated to Japan.
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