Business / Financial Markets

Dollar falls below ¥104.50 in Tokyo

Jiji

The dollar fell below ¥104.50 in Tokyo trading Friday, sapped by growing concerns over the outlook for the U.S. economy and a fall in Tokyo stock prices.

At 5 p.m., the dollar stood at ¥104.42-46, down from ¥105.07-07 at the same time Thursday. The euro was at $1.1875-1876, up from $1.1757-1759, and at ¥124.01-06, up from ¥123.48-59.

In foreign trading the previous day, the dollar fell below ¥104.70, as the yen attracted safe-haven buying following Thursday’s announcement that U.S. gross domestic product contracted a record 32.9 percent on an annual basis in April-June, traders said.

After rising close to ¥104.80 in Tokyo in the early morning thanks to buybacks, the greenback fell to fresh four-month lows of about ¥104.20 around noon, mainly in line with a plunge in the benchmark Nikkei stock average.

The dollar showed some resilience in late trading, aided by repurchases, traders said.

“The yen is strengthening as a safe-haven asset amid bleak earnings reports from Japanese companies,” an official of an asset management firm said.

Meanwhile, an official of a major securities company attributed the yen’s appreciation to “the speculation that low interest rates will continue in the United States.”

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