Dollar hits 5-week low in Tokyo on China credit-tightening concerns

Associated Press

TOKYO, Jan. 27 (AP) – (Kyodo)—The U.S. dollar briefly hit a fresh five-week low in the lower 89 yen zone Wednesday morning in Tokyo on rekindled concerns over China tightening credit, which could potentially slow down global economic recovery…

… After hovering in the upper 89 yen level, the dollar lost further ground to 89.33 yen on persistent worries about the prospects of a global economic recovery, triggered by reports Tuesday that some Chinese banks were asked to curb lending, dealers said.

“The market seems to be dragging on the trend from yesterday,” said a senior dealer at a Japanese bank, noting that the dollar has already been on a weakening trend, amid instability in global stocks and commodities markets in the wake of U.S. President Barack Obama’s proposal to limit the size and risks of financial activities…

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