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The dollar fell below ¥106 in Tokyo trading Wednesday, reflecting drops in stock prices in Japan and abroad.

At 5 p.m., the dollar stood at ¥105.93, down from ¥106.26 at the same time Tuesday. The euro was at $1.1774, down from $1.1816, and at ¥124.72, down from ¥125.56.

In overseas trading, the dollar plunged to around ¥105.80, reflecting falls in U.S. and European stocks, which were triggered by concerns over a further deterioration in U.S.-China ties and by receding expectations of the development of a novel coronavirus vaccine.

After fluctuating around ¥106 in the early morning of Tokyo trading, the U.S. currency fell below ¥105.90 later in the morning, weighed down by a drop in the benchmark 225-issue Nikkei average.

The dollar hovered around ¥105.90 for the majority of the afternoon. It briefly slipped below ¥105.80, pressured by falls in U.S. stock index futures in off-hours trading.

Some market sources saw the dollar-yen rate's move as a correction, while an official at a bank-affiliated securities firm said that market participants showed "typical risk-averse behavior as the yen, the dollar and Swiss franc attracted buying."

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