The dollar lost further ground to slip below ¥111 in Tokyo trading on Thursday, due to risk-aversion moves sparked by concerns over the administration of U.S. President Donald Trump.
At 5 p.m., the dollar stood at ¥110.91-92, down from ¥112.44-45 at the same time Wednesday. The euro was at $1.1132-1132, up from $1.1088-1088, and at ¥123.46-48, down from ¥124.68-69.
The dollar dropped below ¥111 for the first time in about three weeks following overnight tumbles in U.S. stock prices and long-term interest rates on the back of allegations that U.S. President Donald Trump has attempted to influence probes by the Federal Bureau of Investigation, market sources said.
Worries over the Trump administration’s policy management were also fueled by news reports that the president has disclosed to Russia highly classified information related to the Islamic State militant group, the sources said.
“Investors are concerned about the possibility of impeachment for Trump,” said an official at a foreign exchange margin trading service firm.
After falling below ¥110.60, the dollar rose above ¥111 thanks to buying on dips by real demand-backed players.
In late hours, the dollar came under renewed selling pressure and fell below ¥111 again, reflecting lower long-term interest rates.
With political turmoil involving Trump expected to continue for a while, the dollar is likely to test its lows, one market source said.