Business / Financial Markets | CURRENCY MARKET

Dollar falls to 14-month low, near ¥107, in Tokyo trading

JIJI

The dollar hit a 14-month low close to ¥107 in Tokyo trading Friday, as a risk-off mood grew amid heightened concerns over the situation in the Middle East.

At 5 p.m., the greenback stood at ¥107.44-45, down from ¥107.67-67 at the same time Thursday. The euro was at $1.1311-1311, up from $1.1297-1297, and at ¥121.54-54, down from ¥121.64-64.

In early trading, the U.S. currency moved on a weak tone around ¥107.30 after U.S. President Donald Trump on Twitter denounced Iran’s downing of a U.S. military drone the previous day.

Dollar selling against the safe-haven yen was fueled by a media report that Trump had approved limited retaliatory attacks against Iran but abruptly called them off.

With the geopolitical risk in the Middle East heightening, the greenback gradually lost ground in early afternoon trading, to around ¥107.05, a Japanese bank official said.

A key U.S. long-term interest rate’s sharp drop also weighed down the dollar, a fund manager said.

But the dollar rebounded close to ¥107.50 in late trading, thanks partly to buying to cover short positions, said an official at a foreign exchange margin trading service company.