TOKYO — Pessimism over implementation of U.S. deficit cuts sent the dollar to record lows on the Tokyo foreign exchange market Monday, while stock prices fell sharply, traders said.
Japan's central bank intervened repeatedly in the market in an attempt to support the dollar after it opened at a record-low 132.78 yen, down from Friday's close of 133.75 yen, dealers said.
But the dollar continued to sink, at one point trading at 132.35 yen, its lowest level since modern rates were set in the late 1940s. By late morning the dollar was at 132.45 yen. The previous record low was 133.30 yen, hit Nov. 10.
Prices on the Tokyo Stock Exchange declined with the dollar. The 225-share Nikkei Stock Average fell 369.27 points to close the morning session at 22,682.96. It lost 216.39 points Saturday.