Dollar plummets against yen

MUMBAI, December 17: The dollar fell sharply against the yen in Tokyo today after the United States and Britain launched air strikes against Iraq. The dollar was trading at 116.09-12 yen, well down from 116.65 yen in New York just before the strikes began. It had recovered from 115.82-84 six hours earlier in Tokyo.

US president Bill Clinton ordered a quot;strong sustainedquot; series of air strikes against Iraq for flouting UN mandates to account for its weapons of mass destruction.

Economists said they had not been expecting the dollar8217;s fall. quot;It is really a surprise. Usually you get a flight to quality. Investors were taking profits on the dollar after its strong rise in New York. Falls below the 115. 50-yen level were not expected in Tokyo or overseas markets later in the day, they said. quot;As long as concerns are out there over the Iraq situation, it is difficult to sell the dollar,quot; a dealer said.