U.S. Market March 13, 2001

The yen fell to a 20-month low against the dollar as Japanese stocks tumbled to their weakest level since 1985, and on doubts the government will be able to revive economic growth any time soon. The Yen weakened to 120.70 against the US Dollar during the Asian session on Monday and close at 120.45 in NY.

Euro slipped back below 93 cents from previous U.S. close. Euro Yen cross also lower around 111.90 yen. Euro softer despite a sharp fall in US equities again on Monday. Euro weakness may be due to concerns over Germany economic health may be taking a turn for the worse and growth will badly lag the euro-zone average this year. Several think tanks lowered their estimate on projected German GDP growth in 2001 from 2.4 percent to 2.1 percent. Sterling retreated from recent one-week peaks against the dollar and nudged up versus the euro on Monday. British producer prices fell 0.1 percent in February against a drop of 0.4 percent the month before and market expectations of a small increase.

Nasdaq Composite index fell more than three percent and dropped below the psychologically important 2,000 points level. NASDAQ cloed at 1,923 while the Dow Jones faltered 436 points to close at 10,208.

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