Business / Financial Markets

Dollar falls below ¥107.10 in Tokyo trading

Jiji

The dollar weakened below ¥107.10 in Tokyo trading Wednesday, as concerns grew over a second wave of coronavirus infections in the United States.

At 5 p.m., the dollar stood at ¥107.05-05, down from ¥107.56-56 at the same time Tuesday. The euro was at $1.0837-0837, up from $1.0815-0819, and at ¥116.01-02, down from ¥116.34-34.

The dollar rose above ¥107.20 in midmorning trading thanks to buying by Japanese importers for settlement purposes. But the greenback set back to levels around ¥107.10 and saw selling pressure increase after European players become active.

“Investors showed typical risk-averse behavior” in response to an increase in the second-wave risk after a leading U.S. infectious disease expert warned against haste business reopening.

The dollar was also sold for fear of the escalation of U.S.-China tensions over the novel virus’ origin, a think tank analyst said.

Coronavirus banner