Tokyo: The dollar hit a record low against a basket of currencies and fell back below 100 yen on Friday, with traders citing rumours of more hedge fund failures as stoking worries about damaged credit markets.
A fall in Asian stocks added fuel to yen gains, with the Nikkei share average losing 2%.
The dollar fell to 99.84 yen down 0.8% on the day and back near a 12-year low of 99.77 yen struck the previous day. The dollar index — a gauge of its performance against six major currencies — fell to an all-time low of 71.719.
The euro hit a record high above $1.5646.