Rubin’s words hurt yen
Bloomberg NewsTOKYO -- The dollar rose above 137 yen today for the first time in nearly seven years.
"With the bond yield falling and the Japanese economy remaining stagnant, the dollar could hit 140 yen pretty soon," said Takeshi Hanai, head of foreign exchange at Industrial Bank of Japan Ltd.
The dollar rose more than one yen, reaching as high as 137.02 yen, its highest since Aug. 30, 1991. In late Tokyo trading, it was at 136.75 yen, up from 135.96 yen in New York trading Friday.
Accelerating the dollar's climb were expectations that central banks in Japan and the U.S. would hold off from stepping into the market to stem the yen's recent fall, traders said. U.S. News & World Report said in its latest issue that Treasury Secretary Robert Rubin is willing to let the yen plunge below 140 to the dollar and even to 150. Asked if the report is correct, Rubin said that the U.S. strong-dollar policy remains "absolutely unchanged."
