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The dollar fell below ¥104 in Tokyo trading Wednesday due to lower U.S. long-term interest rates amid concerns over a coronavirus resurgence.

At 5 p.m., the dollar was at ¥103.88, down from ¥104.47 at the same time Tuesday. The euro was at $1.1881, up from $1.1846, and at ¥123.43, down from ¥123.76.

Investors’ risk appetite on hopes for coronavirus vaccine development waned due to concerns over a global resurgence of the virus.

“The afterglow of demand for dollars on hopes for vaccine development has faded,” an official from a Japanese bank said.

The dollar’s decline also was driven by speculative buying of the euro ahead of a summit of European Union leaders set for Thursday.

A trust bank official said that there is market enthusiasm for buying the pound and euro because of “hopes that some progress may be made next week” on trade talks between the U.K. and EU.

A slide in the benchmark 225-issue Nikkei average also prompted dollar selling. The Nikkei index fell 1.10% a day after closing above 26,000 for the first time in over 29 years.

Some believe that the dollar may slide as low as ¥103.20, the level marked on Nov. 6, before expectations for vaccine development buoyed financial markets, a trader said.

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