The dollar lost further ground to trade around ¥121.30 in Tokyo trading on Monday, battered by continued falls in oil and stock prices.
At 5 p.m., the dollar was at ¥121.28-29, down from ¥121.79-80 at the same time Friday. The euro was at $1.0869-0870, slightly up from $1.0867-0867, and at ¥131.84-84, down from ¥132.36-38.
The greenback sank as low as near ¥121 in the midmorning as the benchmark 225-issue Nikkei average extended its fall on the Tokyo Stock Exchange after opening lower. But it later showed resilience, with the Nikkei paring the losses.
On Friday, the U.S. currency briefly surged above ¥123.50, following the Bank of Japan’s decision to take “supplementary” steps to its current monetary easing policy, but soon fell back below ¥122 as the BOJ measures came to be taken as disappointing, traders said.
The dismal performances of the U.S. stock and crude oil markets further dampened the dollar versus the yen late last week.
In Tokyo on Monday, the dollar attracted some buying on dips, but its upside was limited.
“Investors’ sentiment is unlikely to improve unless crude oil prices stop falling,” an official at a foreign exchange brokerage house said. “Also, a sense of disappointment over the BOJ supplementary steps lingers.”
“For the dollar to pick up against the yen, global crude oil markets, as well as the U.S. and European stock markets, need to stabilize,” said an official at a major Japanese bank.