The dollar fell below ¥104.90 for the first time since mid-March in Tokyo trading Wednesday, as the yen attracted safe-haven buying.
At 5 p.m., the dollar stood at ¥104.82, down from ¥105.62-62 at the same time Tuesday. The euro was at $1.1759 dollars, up from $1.1710 dollars, and at ¥123.24-28, down from ¥123.69-69.
In foreign trading the previous day, the dollar fell below ¥105 temporarily, as U.S. stocks fell back due to concerns over the economic outlook amid the unrelenting spread of the novel coronavirus in the United States, traders said.
In Tokyo on Wednesday, the greenback rose above ¥105.20 in midmorning trading, supported by dollar buybacks and real demand-backed buying, they said.
But the dollar fell below ¥105 in the afternoon, with active buying held in check ahead of the end of the U.S. Federal Reserve’s two-day Federal Open Market Committee meeting through Wednesday, they traders said.
“Many market participants refrained from active trading” due to concerns over a delay in an economic recovery in the United States and a further intensification of the U.S.-China animosity, a currency market broker said.
After the Fed meeting, Chairman Jerome Powell is scheduled to brief the press on a policy decision. “If Powell says that an economic recovery will take a long time, the dollar may be sold again,” an official of a foreign exchange margin trading service firm said.