Financial Markets

Dollar slips to around ¥107.40 in Tokyo trading

Jiji

The dollar fell to around ¥107.40 in Tokyo late Tuesday amid a risk-averse mood in response to drops in the U.S. and Japanese stock markets and in crude oil prices.

At 5 p.m., the dollar stood at ¥107.38-38, down from ¥107.69-70 at the same time Monday. The euro was at $1.0829-0829, down from $1.0867-0868, and at ¥116.29-36, down from ¥117.05-05.

The dollar fell to around ¥107.50 in overseas trading after the key West Texas Intermediate crude oil futures contract tumbled into negative territory for the first time and U.S. stocks plunged.

Although real demand-backed buying pushed the greenback up to around ¥107.70 in the morning , the U.S. currency slipped to around ¥107.30 in the afternoon, weighed down by safe-haven yen buying against the backdrop of a fall in the Nikkei 225 stock average.

An official at a Japanese bank warned that a stronger yen may be instigated by an expanding Japanese trade surplus if dollar payments by Japanese companies decrease due to a drop in crude oil prices.

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