In Shift, Dollar Rises Against the Yen

The dollar rose in early trading today, halting a four-day decline against the yen, after leaders from the eight biggest industrialized nations didn’t focus on currencies during their weekend summit, erasing concerns that President Bush might ask to stem the dollar’s rise.

U.S. Treasury Secretary Paul H. O’Neill also reiterated Sunday, “I believe a strong dollar is in the interest of the United States.”

The U.S. currency rose to 123.53 yen from 122.98 late in New York trading Friday, its biggest one-day gain in more than a week. Against the euro, it was little changed at 87.09 cents a euro from 87.11 Friday.

“No dollar-related comments at the [Group of 8] meeting and O’Neill’s remarks prompted traders and investors to buy dollars,” said Tatsuro Karitani, a manager for global foreign exchange at Industrial Bank of Japan.

The yen also fell 0.5% against the euro, slipping to 107.60 a euro from 107.09.