The dollar slid below ¥97.50 in Tokyo trading Wednesday on risk-averse sentiment fueled by stock price falls as well as the continued standstill in the U.S. Congress.

At 5 p.m., the dollar stood at ¥97.36-38, off from ¥97.91-93 at the same time Tuesday. The euro was at $1.3528-3529, down from $1.3567-3568, and at ¥131.71-74, down from ¥132.85-86.

The dollar briefly rose above ¥98 in the morning, backed by real demand-backed purchases, but it later gradually extended losses against the yen as the key Nikkei stock average plunged after a firm opening. The greenback came under renewed selling versus the yen after the Tokyo stock market’s close, falling below ¥97.50.

“The dollar is expected to have difficulty advancing versus the yen for the time being, due to risks stemming from the U.S. fiscal problems,” a foreign bank official said.

The U.S. government partially shut down after Congress failed to pass a budget bill by the end of Monday.

“If the U.S. government is forced to put off the release (Friday) of its closely watched jobs report for September, speculative traders could liquidate dollar-long positions to buy back the yen,” an official at a major Japanese bank said.

Another factor contributing to the dollar’s weakness seemed to be the Japanese government’s economic stimulus plan that lists corporate tax cuts only as an issue for consideration, an official at a foreign exchange margin trading service provider said. ‘

Prime Minister Shinzo Abe announced the previous day that his government will consider whether to include controversial corporate tax cuts in a ¥5 trillion stimulus package to be finalized later this year.