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Dollar easier below ¥115 in Tokyo on stock rout


The dollar was easier below ¥115 in Tokyo trading on Wednesday, as investors remained risk-averse due to continued falls in stock and crude oil prices.

At 5 p.m., the dollar stood at ¥114.88-89, down from ¥115.29-30 at the same time Tuesday. The euro was at $1.1279-1280, up from $1.1182-1182, and at ¥129.60-60, up from ¥128.94-95.

The dollar was sluggish around ¥115.10 in early trading, reflecting its weakness in overseas trading overnight that stemmed from lower crude oil prices and falls in European and U.S. stock prices.

The greenback fell to around ¥114.30 in midmorning trading in line with a plunge in Tokyo stock prices.

Although the dollar briefly jumped above ¥115 thanks to large-lot buying, the U.S. currency soon fell back below the level.

The dollar faced downward pressure as the benchmark Nikkei average ended below 16,000 to hit the lowest closing level in about 15 months due chiefly to growing worries over the global economy, market sources said.

“As a risk-off mood remains strong, no signs can be seen for the dollar’s turnaround for now,” an official at a foreign exchange margin trading service firm said.

The market was also in a wait-and-see mode before U.S. Federal Reserve Chair Janet Yellen’s congressional testimony later on Wednesday and Thursday, market sources said.

In late hours, the dollar drew some buybacks and reached levels around ¥115.

“The dollar’s downside was supported by a caution over currency intervention by Japanese authorities” after the dollar’s recent sharp falls, a market source said.