The dollar turned slightly up after falling below ¥108.00 in Tokyo trading Wednesday.

At 5 p.m., the dollar stood at ¥108.22, down from ¥108.39 at the same time Tuesday. The euro was at $1.2011, down from $1.2068, and at ¥129.99, down from ¥130.82.

The dollar fell into the ¥107 zone in the wake of the 225-issue Nikkei average’s tumble right after the opening bell.

Although the greenback came back into ¥108 terrain in the midmorning on buying by Japanese importers for settlement purposes, it soon met with selling induced by drops in U.S. long-term interest rates and U.S. stock futures in off-hours trading.

After fluctuating tightly around ¥108.00, the dollar went up above ¥108.20 reflecting its appreciation in cross trading with European currencies, which were hit by active position-squaring selling ahead of the European Central Bank’s policy meeting on Thursday.

Concerned about a possible delay in global economic recovery amid variants of the coronavirus reinforcing the resurgence of COVID-19 cases, “investors find the yen attractive as a safe-haven currency,” a currency broker said.

An official at a foreign-affiliated securities firm also pointed out that players have grown dollar-bearish expecting risk-averse sentiment to become stronger as U.S.-China tensions heighten.

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