The dollar slid to around ¥104.50 in Tokyo trading Thursday, falling prey to selling from risk-averse market players prompted by lower European stocks.
At 5 p.m., the dollar stood at ¥104.54, down from ¥105.00 at the same time Wednesday. The euro was at $1.1861, down from $1.1867, and at ¥124.00, down from ¥124.63.
The dollar slipped to around ¥104.40 in overnight foreign trading, as it weakened against an array of European currencies such as the euro and the pound.
In Tokyo on Thursday, the dollar drew purchases from Japanese importers and buybacks, which pulled up the U.S. currency to about ¥104.70 around noon.
But a decline in the 225-issue Nikkei average and losses in other Asian stock markets weighed on the greenback in the afternoon. The weakness of European stocks also fueled dollar sales in the late afternoon.
The dollar remains vulnerable to selling to buy euros due to strong demand for the European Union's coronavirus-related bonds and an agreement to continue trade negotiations between Britain and the EU, market sources said.
Despite the downward pressure, however, an official of a Japanese bank said that "there are not enough factors (for the dollar) to fall below ¥104."