The dollar fell to around ¥107.50 in Tokyo trading Wednesday, pulled down by a stock sell-off.
At 5 p.m., the dollar stood at ¥107.64-65, down from ¥108.42 at the same time Tuesday. The euro was at $1.0959-0960, down from $1.0996-0997, and at ¥117.97-118.00, down from ¥119.22-23.
The dollar firmed above ¥107.90 in midmorning trading, thanks to buying by Japanese importers and domestic institutional investors. But the greenback fell back to levels near ¥107.30 in the afternoon on selling prompted by the 225-issue Nikkei average’s accelerated downswing.
ln late trading, the dollar recouped some of lost ground versus the yen while strengthening against the euro and the British pound amid worsening outlooks for European economies due to the unabated coronavirus pandemic.
Although market sentiment was chilled by the Bank of Japan’s dismal tankan business conditions report for March, announced in the morning, “the dollar-yen pair remained firmer than expected,” a currency broker said.