The dollar slid to levels around ¥103.20 in late Thursday trading in Tokyo, coming under selling pressure from European players.
At 5 p.m., the dollar stood at ¥103.18, down from ¥103.44 at the same time Wednesday. The euro was at $1.2232, up from $1.2154, and at ¥126.22, up from ¥125.70.
The dollar climbed above ¥103.50 in the morning thanks to buying by Japanese importers.
After the buying spree ran its course, the U.S. currency dropped to around ¥103.30 toward noon in the face of selling by Japanese exporters.
Amid a risk-on mood backed by hopes for the growing use of novel coronavirus vaccines, the dollar eased to around ¥103.20 in late trading as buying of European currencies versus the U.S. unit by players from Europe following a rosy economic indicator in the region sparked dollar selling against the yen in turn.
A trust bank official said that the dollar and the yen, which both tend to attract buying in a risk-off situation, were sold under the current risk-taking mood in which hopes for coronavirus vaccines and for a COVID-19 relief package in the United States are outweighing concerns over the ever-spreading virus.
Some sources said that dollar selling pressure could increase, after the U.S. Federal Reserve, at its two-day policymaking meeting through Wednesday, decided to keep its monetary easing policy in place longer to help the U.S. economy withstand the coronavirus fallout.
Traders said that market participants’ focus will be on talks on the U.S. stimulus package and trade negotiations between the European Union and Britain.
“The dollar may weaken if both talks are concluded by the end of the year,” an official at a foreign exchange margin trading service firm said, pointing to the possibility of the greenback falling below ¥103 yen.
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