Japanese Yen

NEW YORK -- The dollar fell to record lows against the Japanese yen yesterday as traders continued to test how far the United States would let the dollar fall in its efforts to put pressure on Tokyo to cut its bloated trade surplus.In late New York trading, the yen was trading at 114.79 to the dollar, slightly above the record low of 114.55 reached earlier in the day but well below its Tuesday close of 116.55.(As of midday Thursday in Tokyo, the dollar had fallen even further, to 114.60 yen.)

FRANKFURT, Germany -- The world dumped the dollar yesterday, pushing it to an all-time low of $1.40 against the euro and to parity with the Canadian dollar for the first time in three decades as currency traders around the world digested the full implications of the Federal Reserve's new course for interest rates. The frenzied selling began early in the day in Europe, never let up, and reached across the Atlantic as traders concluded that the lower borrowing costs the Fed introduced Tuesday would dampen the appeal of dollar-denominated assets such as stocks, bonds and real estate just as other central banks are raising rates to create the opposite effect.

NEW YORK -- The dollar slid against the German mark and hit a record low against the Japanese yen yesterday as investors turned their attention back to the poor state of the U.S. economy and the chances of another cut in U.S. interest rates.Within the past two weeks, the dollar's perceived stability and the belief that the Bundesbank might soon cut interest rates to take the heat off the French franc pushed the U.S. currency as high as 1.5315 marks.But now that tensions within the European exchange rate mechanism are subsiding, investors are again focusing on the threadbare condition of the U.S. economy, said Earl Johnson, a vice president at Harris Bankcorp.

BEIJING -- The United States has not ruled out again selling dollars to buy yen to strengthen the Japanese currency, U.S. Treasury Secretary Robert E. Rubin said yesterday."

NEW YORK -- The dollar steadied in quiet trading yesterday, but traders said it's poised to set new lows against the German mark and the Japanese yen if a drop in U.S. employment triggers another cut in U.S. interest rates.The dollar closed at 1.4121 marks, little changed from 1.4125 marks, and 120.07 Japanese yen, up from 119.31 yen Tuesday.Investors have knocked down the dollar for two days as they concluded that the September employment report, due out tomorrow, will be bad enough to force the Federal Reserve to trim interest rates again.

The U.S. dollar is on the comeback trail against the world's currencies, turning in dramatic gains in 1991 thanks to some new respect.The frequently humiliated greenback has, for example, risen close to 20 percent in value when compared to the sagging German mark. Smart money is betting the United States will begin to show proof of solid economic punch at the very time many other world economies, such as Great Britain's and Germany's, are stumbling. World markets are already demanding more and more dollars.

FRANKFURT, Germany -- Seeking to halt a powerful surge by the German mark and a punishing fall in the American dollar, Germany's central bank cut key interest rates yesterday by up to a half percentage point.The rate cut immediately propelled the dollar up nearly 2 percent against the mark, to end at 1.4090 marks in New York; it finished at 1.3827 Wednesday. The U.S. currency rose to 89.58 Japanese yen, up from 88.39.The Bundesbank's move, the first since May, stunned European markets. Traders generally believed that because of fears of inflation the bank would not try to halt the mark's persistent, monthlong climb.

NEW YORK -- The dollar slid against the Deutschemark yesterday on more bad news from the U.S. housing sector. There was no intervention by central banks to support the U.S. currency.U.S. housing starts dropped 2.8 percent to a seasonally adjusted annual rate of 1.12 million in July after falling a revised 3.8 percent in June.That was weaker than the 1.7 percent gain expected by economists and immediately raised concerns that the Federal Reserve might soon pare interest rates by another 25 basis points, traders said.

NEW YORK -- U.S. stocks closed mixed yesterday as computer-driven programs to sell stocks pared earlier gains and the dollar fell to a post-World War II low against the Japanese yen.Stocks rallied throughout the day as the dollar strengthened against major European currencies and bond yields fell."

FRANKFURT, Germany -- The world dumped the dollar yesterday, pushing it to an all-time low of $1.40 against the euro and to parity with the Canadian dollar for the first time in three decades as currency traders around the world digested the full implications of the Federal Reserve's new course for interest rates. The frenzied selling began early in the day in Europe, never let up, and reached across the Atlantic as traders concluded that the lower borrowing costs the Fed introduced Tuesday would dampen the appeal of dollar-denominated assets such as stocks, bonds and real estate just as other central banks are raising rates to create the opposite effect.

PARIS -- President Clinton's arrival in Beijing brings to a climax the two countries' attempt to manipulate the political affairs of the other. The Chinese expect to exploit Mr. Clinton's visit to cover over their policies of internal repression and implicitly endorse their ambition to become the dominant power in Asia.They will see in it validation of their recent discovery that the way to deal with the United States is not through the State Department or the White House, but by directly or indirectly financing political parties and election campaigns, and by persuading U.S. corporations doing business in China to lobby on China's behalf in Washington.

WASHINGTON -- Japanese officials said yesterday that they would withdraw from trade talks with the United States on automobiles and parts if the Clinton administration threatens sanctions during the negotiations.The bleak reports from the trade talks sent the dollar down to new lows against the Japanese yen yesterday, and this morning in Japan the U.S. currency dipped below 80 yen for the first time ever. The dollar, after hitting 79.80 yen in early trading, was back at 80.45 yen by late morning after the Bank of Japan intervened to buy dollars.

FRANKFURT, Germany -- Seeking to halt a powerful surge by the German mark and a punishing fall in the American dollar, Germany's central bank cut key interest rates yesterday by up to a half percentage point.The rate cut immediately propelled the dollar up nearly 2 percent against the mark, to end at 1.4090 marks in New York; it finished at 1.3827 Wednesday. The U.S. currency rose to 89.58 Japanese yen, up from 88.39.The Bundesbank's move, the first since May, stunned European markets. Traders generally believed that because of fears of inflation the bank would not try to halt the mark's persistent, monthlong climb.

The world's globalized economy, with currency in the trillions moving across borders on a daily basis, is once again teaching governments a harsh lesson. Central banks may intervene massively to try to stop the free fall of the dollar or the dizzying descent of the peso and the peseta; they may raise interest rates or attempt to impose stability. All to no avail. Once the speculators get the bit in their teeth, once they start a stampede to safe havens -- currently the German mark and the Japanese yen -- there is no stopping them.

Washington -- TAX BREAKS FOR the middle class. A balanced federal budget in the next century. Limits on the growth of federal spending. That's what the voters want, the polls say. We should act quickly.Few dare to question the new mantra. A rare skeptic, Laura Tyson, chair of President Clinton's Council of Economic Advisers, suggests that the "discipline of the markets" might alter these plans. But her voice is all but lost as the mighty host raised by incoming House Speaker Newt Gingrich girds for a "revolution."

NEW YORK -- U.S. stocks closed mixed yesterday as computer-driven programs to sell stocks pared earlier gains and the dollar fell to a post-World War II low against the Japanese yen.Stocks rallied throughout the day as the dollar strengthened against major European currencies and bond yields fell."

The world's globalized economy, with currency in the trillions moving across borders on a daily basis, is once again teaching governments a harsh lesson. Central banks may intervene massively to try to stop the free fall of the dollar or the dizzying descent of the peso and the peseta; they may raise interest rates or attempt to impose stability. All to no avail. Once the speculators get the bit in their teeth, once they start a stampede to safe havens -- currently the German mark and the Japanese yen -- there is no stopping them.

TOKYO -- Japan, already gripped by political turmoil, now faces a full-blown currency crisis.The yen became more valuable than the penny yesterday for the first time since World War II, as financial markets shrugged off strong central bank intervention. The losing struggle between the Bank of Japan and the market became evident early in the day, with the yen steadily rising despite the bank's purchase of billions of U.S. dollars."The fear," said David Snoddy, a financial analyst at Jardine Fleming, an investment bank, "is that nobody knows why this is happening."

For at least 12 minutes yesterday on the New York financial markets, a U.S. penny was worth less than a Japanese yen -- the first time this once-unthinkable phenomenon had occurred in modern history. It was a dramatic reflection of churning foreign exchange rates that are driving down the value of the dollar, puncturing an overpriced stock market, pushing up commodity prices and perhaps forcing the Federal Reserve to increase short-term interest rates once again.Unlike the Fed's earlier boosts in interest rates this year, this one (if it comes)