The dollar weakened to around ¥108 in Tokyo trading Tuesday as hopes receded for concerted monetary and fiscal actions by the world’s seven major economies to cope with the coronavirus crisis.
At 5 p.m., the dollar stood at ¥108.02-02, down from ¥108.45-45 at the same time Monday. The euro was at $1.1120-1120, up from $1.1063-1063, and at ¥120.12-12, up from ¥119.99-99.
The dollar exceeded ¥108.50 ahead of the opening of the Tokyo Stock Exchange and slipped through ¥108 around the time when the Nikkei 225 stock average plunged into negative territory after showing a vigorous start.
Both the dollar and stocks met with enhanced selling following a media report ruling out the possibility of the Group of Seven finance ministers and central bank chiefs hammering out concrete monetary and fiscal measures to stave off the coronavirus impact on the global economy during a teleconference to be held Tuesday night Japan time, traders said.
But the greenback recouped some of the early losses against the yen later in the afternoon by attracting repurchases.
“Compared with stocks, the dollar-yen pair stayed calm despite the G7 news,” said a securities firm official.
Meanwhile, a Japanese bank official said that players “remained wary” of the coronavirus situation, pointing out that “monetary policy cannot dissipate the virus.”
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