The
U.S.
dollar slid to the mid-119 yen zone Wednesday morning in
Tokyo
as another slump in oil prices and tumbling stocks fueled risk aversion, further trimming the dollar's recent gains prompted by the
Bank of Japan's launch of a negative interest rate.
At noon, the dollar fetched 119.59-63 yen compared with 119.90-120.00 yen in
New York
and
120.63-64 yen in
Tokyo
at 5 p.m. Tuesday.
The euro was quoted at $1.0924-0924 and 130.63-64 yen against $1.0916-0926 and 130.87-97 yen in
New York
and
$1.0902-0904 and
131.51-55 yen in
Tokyo
late Tuesday afternoon.
The dollar inherited its downward momentum from Tuesday as traders continued to seek the perceived safety of the yen.
Further strengthening a risk-off mood, crude oil prices fell in
New York
on Tuesday, with the West Texas Intermediate for March delivery finishing below
$30 for the first time in two weeks amid dwindling hope over a deal on output cuts by oil producers to cope with supply gluts.
Japan's
key stock average
Nikkei ended the morning 556.51 points, or 3.14 percent, lower from Tuesday at 17,194.17, following steep falls in
U.S.
and European stocks overnight.
"With the Nikkei slumping more than 600 points (at one point) and crude oil testing a further downside, there is an increasing sense of caution," said Kengo Suzuki, chief foreign exchange strategist at Mizuho Securities Co.
Suzuki said the dollar's fall against the yen on Tuesday could be viewed as part of a correction following its rapid rise prompted by the BOJ's surprising policy decision on Friday, but the dollar's continued weakness may be suggesting risk aversion strengthening in earnest.
The yen also gained ground versus the euro in the morning while the single European currency changed little against the dollar.
==Kyodo
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Source: Equities.com News
(February 2, 2016 - 12:58 PM EST)
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