TOKYO: The dollar fell to around 110.50 yen in Tokyo trading Thursday, hit by a late bout of selling.
At 5 p.m., the dollar stood at 110.46-47 yen, down from 111.46-46 yen at the same time on Wednesday. The euro was at 1.0925-0925 dollars, up from 1.0807-0807 dollars, and at 120.68-69 yen, up from 120.46-47 yen.
Succumbing to position-adjusting selling by exporters and selling triggered by a plunge in the benchmark 225-issue Nikkei stock average, the dollar dropped below 110.50 yen in morning trading.
The greenback then rose above 110.80 yen in the afternoon, in response to the U.S. Senate’s passage of a 2.2-trillion-dollar economic stimulus package to battle the adverse effects of the spread of the new coronavirus.
In late trading, the U.S. currency fell to around 110.50 yen due to heightened selling pressure.
An official at a trust bank noted that some market participants became risk-averse, reacting negatively to the growing number of virus infection cases in Tokyo and other areas in Japan.
“If an explosive increase of coronavirus infections or a lockdown of Tokyo were to occur, it is more likely that the yen will be sold, rather than bought, amid a risk-averse mood,” an official at a foreign exchange margin trading service firm said.