Currencies: Dollar drops under ¥101 as investors seek safety in yen

The yen flattened out against major rivals in Asia on Wednesday, after failing to maintain early afternoon gains prompted by a selloff in Tokyo stocks.

After staying above the ¥101-threshold from early in Tokyo trading hours, the greenback USDJPY, +0.24% quickly lost ground and hit a low of ¥100.75, as investors moved into the safety of the Japanese currency amid worsening risk sentiment. The benchmark Nikkei Stock Average NIK, -1.88% stretched its losses in the afternoon trade. It was down 1.7% midday.

But the U.S. dollar has since bounced to ¥100.92, compared with ¥100.90 late Tuesday in New York.

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