The U.S. dollar surged sharply against the Japanese yen Friday morning, while stock prices declined. The dollar was quoted at 133.35 yen at 11:30 a.m., up 3.20 yen from Thursday's close of 130.15 yen. After opening at 133.70 yen, it ranged between 133.00 yen and 133.85 yen in the morning. On the stock market, the 225-issue Nikkei Stock Average closed the morning session at 21,933.99 points, down 778.61 points, or 3.4 percent, from Thursday's finish of 22,712.60 points. In bond dealings, the price of the benchmark No. 119 10-year Japanese government bond slipped to 85.62 points as of midmorning, down from Thursday's close of 86.11 points. Its yield, which moves in the opposite direction from price, rose to 7.58 percent from 7.48 percent. The resolution adopted by the United Nations Security Council on Thursday authorizing the use of force to drive Iraq from Kuwait encouraged dollar buying, traders said. The dollar is seen as a safe investment in times of international tensions, while the yen is weakened by possibility of war in the Gulf because Japan imports virtually all its oil. The dollar's jump followed its overnight advance in New York, where it closed at 133.25 yen, as investors sought a safe haven in anticipation of the U.N. decision. Jumpei Ishii, a foreign exchange dealer at the Mitsui Taiyo Kobe Bank, said the dollar was staying close to its New York finish in the absence of fresh market-driving forces. He said investors were generally not taking big risks this late in the year. The lower yen and possibility of war in the Middle East helped push share prices down on the Tokyo stock market, said a dealer at Cosmo Securities, who spoke on condition of anonymity. He said a further plunge may follow because the Nikkei average has hit below the 22,000-point level. ``We see severe times ahead,'' he said.
