Dollar may fall toward ¥100

The dollar tumbled against the yen in Tokyo trading Wednesday, briefly hitting a five-week low below ¥102, as market players faced the stunning prospect of Republican candidate Donald Trump being elected U.S. president.

At 5 p.m., the dollar stood at ¥103.32-33, compared with ¥104.41-42 at the same time Tuesday. The euro was at $1.1113-1115, against $1.1056-1056, and at ¥114.85-87, against ¥115.45-46.

The dollar traded around ¥105.20 in early Tokyo trading, reflecting the view that Democratic candidate Hillary Clinton was expected to take a lead over Trump in the U.S. presidential election on Tuesday.

However, the dollar fell back and accelerated its downswing following news that Trump was projected to win the crucial battleground state of Florida, contrary to forecasts.

The U.S. currency slipped below ¥102 in the afternoon, falling as low as around 101.20, amid a growing risk-averse mood in the wake of media reports that Trump won several key battleground states. The dollar last dropped below ¥102 in Tokyo on Oct. 4.

The dollar showed some resilience in the afternoon, following news that the Ministry of Finance, the Financial Services Agency and the Bank of Japan were set to hold a meeting to discuss financial market conditions, traders said.

After the dollar fell by more than ¥3 from early morning levels, buybacks underpinned the greenback at levels below ¥102, an official at a foreign exchange brokerage firm said.

But the dollar may fall toward ¥100 as the market will try to digest the shock of Trump winning the U.S. presidency, an official at a major Japanese bank said.

Source: JapanTimes

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