February 1, 2016 - 12:54 PM EST
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Dollar edges down in upper 120 yen on lower oil, stock prices


dollar fell slightly in the upper 120 yen zone Tuesday morning in
as renewed selling in crude oil and slides in global stocks dented traders' risk appetite, prompting them to return to the perceived safety of the yen.

At noon, the dollar fetched 120.83-93 yen compared with 120.95-121.05 yen in

New York
and 121.21-23 yen in
at 5 p.m. Monday.

The euro was quoted at $1.0896-0897 and 131.65-66 yen against $1.0883-0893 and 131.69-79 yen in

New York
and $1.0845-0846 and 131.46-50 yen in
late Monday afternoon.

The dollar came under selling pressure versus the yen, reversing some of its recent gains prompted by the Bank of Japan's surprising decision on Friday to introduce a negative interest rate policy.

The turnaround came as a risk-averse mood strengthened after the

West Texas Intermediate for March delivery dropped nearly 6 percent to $31.62 per barrel for its first decline in five days.
and European shares lost ground overnight and Japanese stocks followed suit in the morning. The yield on the bellwether 10-year Japanese government bond ended the morning higher at 0.080 percent after hitting a record low of 0.050 percent the previous day.

"Japanese long-term interest rates fell sharply soon after the BOJ's decision to launch a negative interest rate, leading to the yen's fall. But it appears that the rate fall has run its course at least for today," said Yuji Kameoka, chief foreign exchange analyst at Daiwa Securities Co.

Coupled with a risk-averse mood stemming from lower stocks, concerns over the course of the

and Chinese economies are weighing on market sentiment, Kameoka added, referring to tepid manufacturing data from the world's top two largest economies on Monday.

The euro changed little versus the yen and the dollar in the morning.


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Source: Equities.com News (February 1, 2016 - 12:54 PM EST)

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