Dollar stable in Asia
Afp, Tokyo
The dollar was broadly steady in Asian trade Monday as recent concerted action by the world's major central banks helped to restore some calm to volatile financial markets, dealers said. The Bank of Japan announced another cash injection of 600 billion yen (5.0 billion dollars) into the banking system as part of a global effort to avert liquidity shortages due to problems in the US mortgage sector. The dollar was at 118.26 yen in Tokyo afternoon trade, down slightly from 118.37 in New York late Friday. The euro was also little changed at 1.3698 dollars after 1.3692 and at 161.94 yen from 162.10. The Bank of Japan's injection of liquidity into the money market was the latest in a series of moves by top central banks to prevent a credit crunch. The action has reassured jittery investors, helping Wall Street stage a late recovery on Friday and Japanese shares to rebound in early deals Monday. "The fact that central banks cooperated to supply liquidity gave market players a sense of relief," said Hideaki Inoue, chief manager of currency trading at Mitsubishi UFJ Trust and Banking Corp.
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