December 28, 1996

Dollar Shows Strength Vs. Yen

Associated Press

The dollar briefly surged past 116 yen to another 45-month high Friday after Japan’s trade minister expressed concern about the economic outlook next year, inciting a new round of weakness in the Japanese currency.

The yen’s decline also contributed to a broad rally in the British pound, which rose nearly 2 pence to hit the highest level against the dollar in more than four years. Most other markets were closed.

Although the low volume distorted price movements, market participants said the dollar’s breach of 115 yen and 116 yen this week laid the basis for a possible advance toward 120 yen, an exchange rate last seen nearly four years ago.

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