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The dollar traded below ¥106.90 on Thursday as the trading environment in Tokyo grew increasingly risk-averse.

At 5 p.m., the dollar stood at ¥106.86-87, down from ¥107.05-05 at the same time Wednesday. The euro was at $1.0804-0804, down from $1.0837-0837, and at ¥115.46-47, down from ¥116.01-02.

After hovering above ¥107.00 in the wake of U.S. Federal Reserve Chairman Jerome Powell ruling out negative interest rates, the dollar slipped through ¥106.90 on selling stemming from the Nikkei stock average’s weakness in the morning.

In the afternoon, the greenback rose close to ¥107 at one point but soon lost steam as the Nikkei accelerated its downswing.

“A risk-off mood is growing,” a trust bank official said, blaming the coronavirus pandemic for helping heighten U.S.-China tensions again.

A major commercial bank official said investors increasingly decided to sit on the fence to see whether global economic activity will pick up steadily or not.

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