The minister allayed the fears of bank dealers
and said their deposits in Saudi banks are safe.
Foreign bank dealers said the central bank had encouraged them to limit their foreign exchange holdings in a bid to reduce speculation.
"The central bank has really made it impossible for anyone to keep any kind of long, or even short, position in the foreign exchange market," one foreign bank dealer said.
commercial bank dealers
was $9.7 trillion in total notional amount.
Still, bank dealers
say they do not expect the dollar to stage a strong rally anytime soon and may dip below the 130 yen line in response to rising Japanese stock prices.
Instead, with the year-end approaching, demand for dollars from bank customers and by bank dealers
themselves, who moved to square positions in increasingly thin markets, kept the dollar relatively well bid.
Some Japanese bank dealers
were also seen selling the yen for the dollar to adjust net funds on their hands.
But it turned out that Japanese commercial bank dealers
and institutional investors were buying the U.S.
dollar eased against the yen in Tokyo on Friday on selling by institutional investors and bank dealers
companies, that could be worse than expected,'' the Aozora Bank dealer
Players, especially foreign investors, are skeptical over Japanese Prime Minister Junichiro Koizumi's ability to translate his ''verbal resolve'' to reform the Japanese economy into ''real action,'' a Japanese city bank dealer
"The market is divided fifty-fifty over what decision the ECB will make, and there might be some unexpected moves in euro-dollar trading," the commercial bank dealer