The dollar sank to around ¥103.30 in Tokyo trading Wednesday, the final market day of 2020, due to selling mainly by foreign investors to adjust their positions.
At 5 p.m., the dollar stood at ¥103.32, down from ¥103.68 at the same time Tuesday. The euro was at $1.2266, up from $1.2239, and at ¥126.75, down from ¥126.95.
The dollar met with demand-backed selling in the morning, followed by the effects of demand for the euro among foreign investors, falling to around ¥103.30.
A currency broker said that “domestic financial institutions and other investors felt that ‘trading for the year had ended'” by the afternoon, leaving the greenback struggling for direction.
Risk appetite is believed to be increasing in the market following the enactment of the U.S. coronavirus relief package, with an official at a Japanese bank saying that foreign investors and speculators are transferring funds from the dollar to the euro and the Australian dollar.
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