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Dollar Slips vs. Yen After Bush Says No Bail Out

Reuters
Friday, 31 Aug 2007 | 11:54 AM ET

The dollar slipped against the yen Friday after President Bush and the head of the Federal Reserve both said they would not rescue speculators ailing from deteriorating lending conditions that could worsen.

The yen continued a recent trend of closely tracking moves in the U.S. stock market and climbed as equities cut their gains on the day.

"Basically, it's no bailout -- both Bernanke and Bush are making it clear. Stocks are paring their gains a bit too," said Dixon Fung, head of currency trading at MG Financial in New York.

The dollar was down against the yen after earlier touching session lows around 115.50 yen.

Against the yen, the euro was flat.

The euro was slightly higher on the day against the dollar.

Bush's comments echoed what Federal Reserve Chairman Ben Bernanke said earlier in a speech: that it was not the Fed's job to protect lenders and investors from the consequences of their decisions.