Business / Financial Markets

Dollar falls below ¥107.60 in Tokyo trading

Jiji

The dollar fell below ¥107.60 in Tokyo on Wednesday, pressured by persistent concerns over a further spread of the new coronavirus.

At 5 p.m., the dollar stood at ¥107.57-57, down from ¥107.72-72 at the same time Tuesday. The euro was at $1.1231-1231, up from $1.1222-1223, and at ¥120.81-83, down from ¥120.89-90.

The dollar topped ¥108 for the first time since June 9 in early trading, pushed up by buying from Japanese importers and purchases prompted by a rise in the key 225-issue Nikkei average, traders said.

After slipping back below ¥108 on profit-taking later in the morning, the greenback fell past ¥107.60 in the afternoon, with investor sentiment battered by a downturn of the Nikkei and remarks by Chief Cabinet Secretary Yoshihide Suga that the government may declare a state of emergency over the coronavirus epidemic again “in the event of the worst-case scenario.”

“The dollar met with selling to lock in profits” after it rose above the psychologically important ¥108 line, a Japanese bank official said.

A wait-and-see mood grew somewhat in the afternoon ahead of the releases later Wednesday of the U.S. Institute for Supply Management’s manufacturing index for June and U.S. jobs data for the same month from Automatic Data Processing Inc., traders said.

Coronavirus banner