The dollar lost further ground and slipped to around ¥112.50 in Tokyo trading on Wednesday, dragged down by falling stock prices in Japan and abroad.
At 5 p.m., the dollar stood at ¥112.50-50, down from ¥112.93-94 at the same time Tuesday. The euro was at $1.0983-0984, down from $1.1036-1036, and at ¥123.58-58, down from ¥124.64-65.
Risk aversion remained strong after the dollar was hit by selling in overseas trading overnight due to falls in crude oil prices as well as European and U.S. stocks.
The dollar was around ¥112.70 in early Tokyo trading and fell to as low as around ¥112.40 due to a slide in Japanese stock prices.
The dollar was also pressured by the weakness of the Chinese stock market. Persistent concerns about the outlook for the world’s second largest economy “make it difficult to buy the dollar,” a foreign exchange broker said.
The dollar rose back moderately later as it “drew buying on dips at levels around ¥112.40, its lows in overseas trading overnight,” a currency broker official said.
Still, the dollar failed to extend gains. It is “caught in a narrow range ahead of monetary policy meetings in Japan, the United States and Europe,” an official at a foreign exchange margin trading service firm said.