THE US dollar yesterday edged back towards the psychologically important 100 yen mark after concerted action by central banks sent the Japanese currency towards its lowest level against the greenback in months.
Central bankers from the United States, Germany, Japan and Switzerland surprised the market by their support of the dollar when it was already gaining since previous attempts to bolster the greenback had generally failed.
The benchmark Nikkei 225-stock Average soared four per cent to a six-month high as the stronger dollar boosted prospects for Japan's big exporters - car and electronics makers.
'The outlook on the economy has improved,' said Yutaka Taguchi, head analyst at Nomura Investment Management Co.
There are now predictions the dollar will move above 100 yen, while the dollar's new trading range against the German mark is seen at 1.50.
In early European trade yesterday, the dollar was at 1.4767 marks, up from 1.4740 on Tuesday, and at 97.81 yen, from 96.70.