Post-war low

Press, 4 July 1978, Page 6

Post-war low

NZPA-Reuter Tokyo The United States dollar fell to yet another record low on the Tokyo foreign exchange market yesterday, but share prices on the stock market rose to their highest level since World War 11. The battered United States dollar, which has depreciated by about 36 per cent against the Japanese currency since the beginning of last year, fell briefly to a post-war low of 202.80 yen. But the rate recovered slightly to close at 203.35 yen, compared with a 203.70 opening, after the Bank of Japan was estimated to have bought a modest S2OM to S3OM to support the United States currency, dealers said. Basic factors behind the fall of the dollar, which reached its previous low of 203.80 in Tokyo last Wed-

nesday, were Japan’s booming trade surpluses ! and the large over-ail United States trade deficit. On the stock market, the share average rose 33.90 ; points to a record 5,562.97, j exceeding the previous i high which was established last April. The upward pressure on British sterling and the French franc, which stemmed from speculation that these units were about to be linked to the joint j European float, abated ! after comments by the French President (Mr j Giscard d’Estaing). In the background for sterling were the prospects of a possible confrontation on pay between the British Government'! and mine workers, dealers said. The pound traded 1 about 1.8582/87 dollars against 1.8595/8605 at Friday’s close, and eased to 61.3 from 61.5 on a tradeweighted index basis.