The dollar fell to around ¥108.50 in Tokyo trading Monday amid unabated fears of the spread of a new coronavirus outbreak.

At 5 p.m., the dollar stood at ¥108.62-62, down from ¥109.03-04 at the same time Friday. The euro was at $1.1073-1074, up from $1.1027-1028, and at ¥120.29-30, up from ¥120.24-24.

The dollar slipped through ¥108.40 in overnight trading while concerns over a coronavirus-caused global economic slowdown were growing. But the U.S. currency attracted some repurchases against the yen by Japanese importers in midmorning trading, retaking the ¥108.50 line.

The Shanghai stock market suffered an 8.7 percent loss at the opening after the extended Luna New Year holiday. But currency investors rather felt at ease because the loss was not larger than they had expected, a Japanese bank official said.

The greenback went sideways before being pushed up in the late afternoon by some players moving to buy the dip.

But another bank official warned of the possibility of the dollar’s further decline vis-a-vis the yen, saying, “Selling to square dollar-long positions isn’t over.”

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.