October 23, 2001	Tuesday	Shaba'an 5, 1422

TOKYO, Oct 22: The dollar was firmer in Tokyo trading on Monday as economic uncertainty mounted in Germany and Japan and concerns eased over the spread of anthrax attacks in the United States, dealers said.

The US currency traded at 121.58-60 yen in Tokyo on Monday up from 121.15 yen in New York and 121.17-20 yen in Tokyo late Friday.

Commerzbank AG manager for treasury and foreign exhange Ryohei Muramatsu said the dollar’s appreciation against the yen followed the greenback’s gains against the euro after the release of a negative business climate indicator in Germany on Friday.

The German economic think-tank Ifo business sentiment index on Friday plunged to 85 points in September from 89.5 in the previous month and from 98.2 in September 2000.

Friday’s bad news was preceded on Thursday by German Finance Minister Hans Eichel’s announcement he was cutting the 2001 growth forecast for Europe’s largest economy to 0.75 per cent from a previous 2.0 per cent.

Sanwa Bank foreign exchange vice president Satoshi Tate said the market remained thin, given caution over the US ground attacks on Afghanistan and with weak European economic data discounted by the market.

Tate said trading in the yen will likely react to comments from regional branches of the Bank of Japan (BoJ) due for release today, aiming to gauge the economic situation after the terror in the US.

Earlier BoJ governor Masaru Hayami said the outlook for Japan’s economy remains foggy following the September 11, terrorist attacks in the US.

Uncertainty over the future course of the economy is increasing further following the terrorist attacks in the US, he said.

Adding to worries over the future of Japan Inc., the nation’s trade surplus in September fell 18.3 per cent from a year earlier to $8.7 billion, according to the finance ministry Monday.

Hayami said while it is “unavoidable” for domestic demand to undergo adjustments, the concern is growing that further declines in exports may further pressure the economy.

Commerzbank’s Muramatsu said concerns of a bioterrorist attack in the US were easing, helping to prop up the dollar against the other major currencies.

Against the yen, the euro was quoted at 109.22 against 109.94 in New York and 108.928 yen in Tokyo late Friday.

Tate said both Japanese portfolio investors and trade-related players remain sidelined due to the level of uncertainty after the initial burst of activity that followed the end of the fiscal half in September.

In late Singapore trade, the US dollar firmed to 10,150 Indonesian rupiah from 10,070 on Friday, 51.785 Philippine pesos from 51.7625, 1.8248 Singapore dollars from 1.8204, 1,303.25 South Korean won from 1,302 and 34.543 Taiwan dollars from 34.5385.

The greenback slipped to 44.74 Thai baht from 44.755.—AFP