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The dollar dropped to around ¥109.80 amid growing risk-averse sentiment in Tokyo trading Thursday.

At 5 p.m., the dollar stood at ¥109.76, down from ¥110.50 at the same time Wednesday. The euro was at $1.1835, up from $1.1784, and at ¥129.90, down from ¥130.22.

The dollar fell to around ¥109.80 in midmorning trading, hit by selling spurred by the Nikkei stock average’s plunge.

After showing some resilience, the greenback accelerated its downswing in the afternoon as “risk-off buying of the yen gathered steam in response to the Nikkei’s further decline,” a currency broker said.

The dollar was also weighed down by a fall in U.S. long-term interest rates prompted by U.S. Federal Reserve Chairman Jerome Powell’s dovish comments during a congressional hearing Wednesday.

“As U.S. interest rates are trending down, investors need to find out how low the dollar-yen pair will go down,” said an official at a foreign exchange margin trading service firm.

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