Business / Financial Markets | CURRENCY MARKET

Dollar slides to around ¥112 amid Middle East worries


The dollar slid to levels around ¥112 in Tokyo on Wednesday as concerns about the Middle East mounted on U.S. President Donald Trump’s reported decision to recognize Jerusalem as Israel’s capital.

At 5 p.m., the dollar stood at ¥112.09-10, down from ¥112.62-63 at the same time on Tuesday. The euro was at $1.1824-1824, down from $1.1856-1857, and at ¥132.54-55, down from ¥133.54-56.

Dollar sales intensified as financial market players grew risk-averse following the news of Trump’s decision, which also sparked a stock sell-off in Tokyo, market sources said.

The greenback dipped to around ¥112 in late trading after hovering around ¥112.50 in the morning.

“Adjustment selling of the dollar accelerated in line with a tumble in stock prices,” an official at a currency margin trading service provider said.

The greenback “may test its low further,” following the Nikkei average’s unexpectedly sharp fall, an official at a foreign exchange brokerage house said.