Business and Finance
THE PRIME RATE is expected to rise further in the coming weeks following Friday's increase to 8% from 7 3/4%. A higher prime is predicted because the Fed may raise its discount rate soon to help support the dollar. Many economists believe the Fed's recent credit tightening, along with Japan's rate cuts, won't be enough to stem the dollar's fall.</br></br>Nakasone's visit did little to ease trade and economic tensions between the U.S. and Japan. The lack of initiatives disappointed some foreign exchange traders, who expect the dollar to decline further this week.</br></br>Japanese investors are crucial to the success of the U.S.-Japan effort to coordinate interest rates. Meanwhile, Japan's jobless rate and trade surplus hit records in the fiscal year.</br></br>---</br></br>Merrill Lynch relieved two senior officers of their responsibility for trading activities. The move, which may be followed by other personnel shifts, came after the securities firm reported one of the largest trading losses in Wall Street history.