Yen Falls to 38-year Low against Dollar

The yen fell on Wednesday to its lowest level against the dollar in 38 years and its lowest level ever against the euro.

The dollar fell against a basket of currencies and continued the decline that began yesterday, after dovish comments made by Federal Reserve Chairman Jerome Powell that reduced the impact of the strong local jobs report.

The yen fell by about 0.3% to 161.94 against the dollar for the first time since December 1986. It also recorded its lowest level ever at 173.80 against the euro.

The dollar index, which measures the performance of the US currency against the euro, the British pound, the yen and three other major currencies, fell by about 0.1% to 105.61.

The euro rose 0.15% to $1.0761.

The Australian dollar rose 0.2% to 0.668 US dollars, while the yuan fell in external trading to the lowest level in eight months amid indications that the Chinese authorities are ready to allow the currency to decline.

The yuan ended the local trading session at 7.2734 against the dollar, the weakest close since November 1.