The dollar shed earlier gains to move around ¥109 in Tokyo trading Wednesday, as investors grew risk-averse anticipating a U.S. stock market sell-off.
At 5 p.m., the dollar stood at ¥109.02, slightly higher than ¥109.01 at the same time on Tuesday. The euro was at $1.2385, down from $1.2395, and at ¥135.02, down from ¥135.13.
The dollar firmed to ¥109.60 in early trading in the wake of Wall Street’s rebound. But the U.S. currency was hit by profit-taking later in the morning.
In the afternoon, the dollar fell below ¥109.30 as the Nikkei stock average lost steam after a sharp rally and U.S. long-term interest rates stopped rising, market sources said.
Players became cautious about buying the greenback also in view of drops in New York stock futures in after-hours trading, a currency broker said.
The dollar was pushed down to around ¥109 by accelerated yen buying by European investors in late afternoon trading, traders said.