The dollar weakened below ¥107 in Tokyo trading Thursday as a risk-averse mood spread through the market.
At 5 p.m., the dollar stood at ¥106.97-99, down from ¥107.34-34 at the same time Wednesday. The euro was at $1.1243-1243, down from $1.1265-1268, and at ¥120.28-28, down from ¥120.93-96.
The drop in the Nikkei stock average sparked by growing fears of a second wave of novel coronavirus infections pushed the dollar down to levels around ¥106.70 in the morning. In the afternoon, the greenback went sideways in the ¥106.80-90 range after recouping losses on buybacks.
“With the stock market becoming sensitive to coronavirus-linked negative news, the dollar-yen pair seems to have entered a risk-off trading phase,” an official at a major Japanese bank said.
“Technically it is critical for the dollar to stay above ¥106.50,” an official at a life insurer noted.