The dollar recouped some lost ground to hover just above ¥108 in Tokyo trading on Wednesday after plunging below the ¥108 line on rekindled global economic worries.
At 5 p.m., the dollar was at ¥108.11-12, down from ¥108.50-50 at the same time Tuesday. The euro was at $1.2652-2653, up from $1.2638-2641, and at ¥136.79-81, down from ¥137.13-16.
The greenback dropped to a low around ¥107.75 in early Tokyo trading after coming under renewed selling in overseas trading overnight amid increased risk-averse sentiment among investors, traders said.
The dollar’s topside versus the yen was pressured by stock market slumps both in Japan and abroad as well as by a fall in long-term U.S. interest rates.
The risk aversion was triggered in part by the International Monetary Fund’s latest economic growth forecasts released on Tuesday, as well as a fall in German industrial production in August.
The IMF revised downward the global growth projection by 0.1 point to 3.3 percent for 2014 and by 0.2 point to 3.8 percent for 2015.
Still, demand for the dollar, including from Japanese importers, proved to be solid in the Tokyo market, helping the U.S. currency rebound as high as around ¥108.50 at one point, traders said.
via Japan News
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.