The dollar hit fresh four-month lows below ¥105.40 in Tokyo trading Monday, reflecting growing concerns over the outlook for the global economy amid intensifying U.S.-China tensions.

At 5 p.m., the dollar stood at ¥105.57, down from ¥106.91 at the same time Wednesday. The euro was at $1.1696, up from $1.1516, and at ¥123.47, up from ¥123.13. The Tokyo market was closed Thursday and Friday for national holidays.

In New York trading Friday, the dollar hit four-month lows below ¥105.70 on safe-haven buying of the Japanese currency, as Washington and Beijing exchanged tit for tat orders to shut consulates.

The Chinese Consulate in Houston was shut Friday in line with a U.S. request, followed by the closure of the U.S. Consulate in Chengdu on Monday as ordered by Beijing.

In Tokyo on Monday, the greenback rose above ¥106 in the morning thanks apparently to strong appetite for buying on dips by domestic players, traders said.

But it sank below ¥105.40 in the afternoon on renewed dollar selling, reaching levels not seen since mid-March. By 5 p.m., the U.S. currency cut its losses slightly.

“It looks more like a dollar fall than a yen rise,” an official of a foreign-affiliated securities firm said, describing the day’s moves in the dollar-yen sector.

Euro-buying against the dollar triggered by the recent deal on the European Union coronavirus fund, coupled with the massive dollar supply by the U.S. Federal Reserve, prompted the dollar fall, the official said.

Market sentiment will be “overshadowed by downside risks” to the dollar for the time being amid growing risk-aversion, a Japanese bank official said.

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