Dollar falls to post-war low

Press, 24 October 1978, Page 20

Dollar falls to post-war low

The United States dollar plunged to a postwar low of 181.70 yen on the Tokyo foreign exchange market yesterday after its weakness against most major currencies abroad last Friday. . The battered dollar opened trading at 182.00 yen, and then fell in stages to the new low on selling by foreign banks, dealers said. The previous low in Tokyo of 181.80 yen was established on August 15 The dollar which stood at around 237 yen in Tokyo at the beginning of this year has now lost about 40 per cent in value against the powerful Japanese currency since January last year.

After falling to the postwar low, the dollar later recovered to 181.90 on import covering by Japanese banks, dealers said. No central bank intervention was detected to bolster the American currency in early trading. Dealers said the market cautiously was awaiting President Carter’s measures, expected to be announced today United States time, to combat inflation in the United States. Inflation in the United States, the large American trade deficit, and Japan’s large and still growing trade surpluses have been major factors behind the dollar’s plunge.