Dollar sinks to 15-year low against the yen

The US dollar fell to a new 15-year low against the yen in Tokyo trading today as investors tried to avoid risky bets and adding pain for Japanese exporters.

The dollar fell below 83.30 yen at midmorning in Tokyo, breaking the previous low of 83.35 yen it fetched on Sept. 8.

New global banking regulations and signs that growth in China is picking up - assuaging fears of a steep slowdown in the world's second largest economy - weighed on the dollar Monday.

"The dollar was sold as investors tried to avoid risk," said Yuji Kameoka, chief currency strategist at Daiwa Institute of Research in Tokyo.

He said market speculation that Prime Minister Naoto Kan would win the ruling party leadership election later Tuesday might also have contributed to the stronger yen.

"Although there are mixed views, Prime Minister Kan is seen as being more reluctant to intervene in the currency market," Kameoka said.