Dollar drops briefly to lower 108 yen on global equities rout

BY  | FROM  | 2018-02-06 20:02

The U.S. dollar dropped to the lower 108 yen zone briefly in Tokyo on Tuesday due to a global equities rout triggered by a rise in U.S. Treasury yields overnight causing a record point decline in the Dow Jones Industrial Average.

The dollar drew selling against the yen as the Japanese currency is considered a safe haven in times of market turmoil.

The U.S. currency regained ground in later trade, supported by the Bank of Japan's commitment to monetary easing and a potentially wider gap between interest rates in Japan and the United States.

The dollar was quoted at 109.02-03 yen, at 5 p.m. local time, compared with 109.01-11 yen in New York and 109.90-91 yen in Tokyo at 5 p.m. on Monday.

The U.S. dollar during the day changed hands between 108.46 yen and 109.30 yen, with 108.70 yen being the most frequently exchanged rate.

The euro, meanwhile, fetched 1.2395-2396 dollars and 135.13-17 yen against 1.2362-2372 dollars and 134.87-97 yen in New York and 1.2439-2440 dollars and 136.71-75 yen in late Monday afternoon trade in Tokyo.

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