Currencies
The yen rose to a three-month high against the dollar after factories in Japan boosted production and the government said it refrained from selling yen from July 30 through August 27. At the behest of the Ministry of Finance, the Bank of Japan sold a record ¥9.03 trillion ($77.4 billion) from January through July. The announcement was met with some surprise following record interventions against the yen through the first seven months of 2003 and led currency markets to immediately press the yen higher.

Japan's currency rose as high as ¥116.15 to the dollar from ¥117.32 on Thursday. The yen was the best performing major currency against the dollar and the euro in August. Demand for the yen is being spurred by a recovery in Japan. Industrial production expanded 0.5 percent last month, more than twice the pace forecast. Overseas investors were net buyers of Japanese equities for a 19th week in the week ended August 22nd according to data released by the Ministry of Finance.

Despite the euro's jump on Friday, the dollar still was up 2.4 percent in August. The euro had remained in a relatively narrow trading range last week, until Friday when it rallied to its best level in more than a week despite firm U.S. manufacturing data. But as traders in the U.S. deserted their trading desks and left for their long holiday weekend, there was little appetite for the dollar to challenge the euro's rise.

Last Week's Highlights   •   Global Stock Market Indexes   •   Recap of Global Markets   •   Currencies   •  Indicator Scoreboard

The Bottom Line   •   Looking Ahead