The dollar dropped to around ¥110.40 in Tokyo trading Wednesday amid persistent concerns over the spread of the new coronavirus.
At 5 p.m., the dollar stood at ¥110.47-47, down from ¥110.71-72 at the same time on Tuesday. The euro was at $1.0871-0871, up slightly from $1.0852-0853, and at ¥120.10-11, down marginally from ¥120.15-16.
After temporarily dropping below ¥110 in overseas trading amid a risk-off mood fueled by fears over the global spread of the new coronavirus, the dollar recovered to around ¥110.30 in the morning of Tokyo trading, thanks to buybacks.
Reflecting the benchmark 225-issue Nikkei average cutting its losses and a rise in Dow Jones industrial average futures in off-hours trading, the greenback rose to around ¥110.50 in the early afternoon, before moving tightly around ¥110.40 in late trading.
An official at a Japanese bank said that the dollar-yen rate was “surprisingly steady,” as many market participants both from the customer side and speculators were willing to engage in dollar buying.
Meanwhile, an official at a trust bank predicted that the dollar-yen rate will show calmer moves, saying that the U.S. currency is expected to fluctuate between ¥109 and ¥111.