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The dollar dropped to around ¥106.50 in Tokyo trading Wednesday, dragged down by softer stock prices and speculation.

At 5 p.m., the dollar stood at ¥106.60-60, down from ¥107.10-10 at the same time Tuesday. The euro was at $1.1297-1298, down from $1.1300-1301, and at ¥120.42-45, down from ¥121.02-05.

Following a drop below ¥106.10 in overseas trading, the dollar rose back above ¥106.60 on buying by Japanese importers in midmorning trading.

But the greenback came under stronger selling pressure after the 225-issue Nikkei average shed gains to move around Tuesday’s closing level, traders said.

An asset manager said SoftBank Group Corp.’s announcement of a plan to sell part of its shareholdings in T-Mobile US Inc. “led to speculation about conversion of the dollar-denominated proceeds from the stock sale into yen and prompted yen buying against the dollar.”

“It’s merely speculation,” an official at a bank-affiliated securities firm said. “SoftBank Group is highly likely to keep the gains in dollar.”

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