AFP, Tokyo :
The dollar recovered slightly against the yen Tuesday, although gains were limited as investors remain on edge after a sharp plunge in Chinese stock markets hit risk sentiment.
In Tokyo the greenback fetched 123.68 yen, up from 123.24 yen in New York late Monday.
The euro changed hands at $1.1062 and 136.60 yen, against $1.1091 and 136.69 yen in US trade, where it rallied thanks to a rise in German business confidence and signs of a pickup in lending in Europe.
Global markets were jolted Monday after Shanghai stocks plunged 8.48 percent-the steepest one-day fall in eight years-as data showing more weakness in the Chinese economy combined with fears government support measures for the mainland market will not last.
The losses continued Tuesday, with Shanghai closing down 1.68 percent, following almost three weeks of relative calm after Beijing unveiled a series of measures to end a month-long rout that saw Shanghai slump more than 30 percent.
“Yen-buying sentiment was strong as players were trying to avoid risk as the Chinese market slumped,” said Minori Uchida, head of Tokyo global markets research at Bank of Tokyo-Mitsubishi UFJ.
The yen is considered a safe investment in times of uncertainty.
