The dollar rose to around ¥111.50 in Tokyo trading Wednesday, on the back of expectations for an economic stimulus package by the United States to tackle the negative effects of the spread of the new coronavirus.

At 5 p.m., the dollar stood at ¥111.46-46, up from ¥110.53-53 at the same time on Tuesday. The euro was at $1.0807-0807, down from $1.0830-0830, and at ¥120.46-47, up from ¥119.70-72.

Reflecting heightened expectations for the passage of the stimulus package by the U.S. Congress, the dollar surged to around ¥111.70 at one point in overseas trading.

In Tokyo trading, the greenback fell to around ¥110.70 in the late morning, succumbing to dollar selling by exporters.

The U.S. currency then climbed to around ¥111.50 in late trading in response to news reports that the administration of U.S. President Donald Trump has reached a deal with Senate Democrats and Republicans on the stimulus package.

“While demand for dollars remains strong, some market players were engaging in yen buying during Tokyo trading hours, with repatriation of funds by some Japanese companies seen before the end of the business year,” an official at a foreign exchange margin trading service firm said.

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