The dollar recovered ¥110 in Tokyo trading Wednesday, as investors calmed down after overreacting to news about the spread of a deadly viral outbreak.
At 5 p.m., the dollar stood at ¥110.00-00, up slightly from ¥109.97-97 at the same time Tuesday. The euro was at $1.1085-1086, down from $1.1092-1092, and at ¥121.95-95, down from ¥121.99-99.
After moving at levels below ¥109.90, the dollar topped ¥110 toward noon on buybacks induced by the Nikkei average’s rebound. The greenback then lost upward momentum in the absence of fresh buying incentives.
Excessive concerns over the new Chinese coronavirus receded, thanks in part to a media report pointing out that the virus is not extremely fatal, a currency broker said.
Still, players found it not advisable to actively buy the dollar against the yen as long as an end to the outbreak is not in sight, an official at a foreign exchange margin trading service firm said.