TOKYO (Kyodo)--The U.S. dollar plunged to a four-month low in the 88 yen range Tuesday in Tokyo as a plunge in Chinese stocks deepened concern over the global economy.
At 5 p.m. the dollar traded at 88.62-63 yen compared with 89.31-41 yen in New York and 89.37-40 yen in Tokyo at 5 p.m. Monday.
It moved between 88.56 yen and 89.42 yen, trading most frequently at 88.77 yen.
The euro changed hands at $1.2215-2216 and 108.25-29 yen against $1.2273-2283 and 109.67-77 yen in New York, and $1.2352-2355 and 110.41-45 yen in Tokyo late Monday.
The dollar traded narrowly around the lower 89 yen level in early trading, but investors were prompted to sell the U.S. currency for the relatively safer yen in the afternoon after a plunge in the Chinese stock market, dealers said. The dollar fell at one point to as low as 88.56 yen, its lowest level in Tokyo since March 4, when it dropped to 88.14 yen.
''The dollar-selling was spurred by tumbling equity prices in Shanghai as players worried that the fall could spread to European and U.S. markets,'' said Daisuke Uno, chief strategist of the Treasury Marketing Department at Sumitomo Mitsui Banking Corp.
''Players also worried that the falling stock prices in China could hurt the global economy,'' said Norihiro Tsuruta, chief strategist of the Global Investment Research at the Shinko Research Institute.
Shanghai stocks fell to a 14-month low Tuesday.
Uno said players also sold the dollar to adjust long positions.
The euro also dropped versus the yen, falling to the lower 108 yen level for the first time since early June, in line with the yen-buying against the dollar, dealers said.
The market is now focusing on the Bank of Japan's Tankan corporate sentiment survey to be released Thursday and the U.S. employment report for June due out Friday, dealers said.
