The dollar firmed to around ¥107.20 in Tokyo trading Tuesday, buoyed by optimism over the development of novel coronavirus vaccines.

At 5 p.m., the dollar stood at ¥107.27, up from ¥106.98 at the same time Monday. The euro was at $1.1331, up from $1.1318, and at ¥121.55, up from ¥121.10.

Encouraged by an announcement by Pfizer and BioNTech that two experimental coronavirus vaccines under joint development by the two companies were given “fast track” designations by the U.S. Food and Drug Administration, the dollar climbed to around ¥107.40 in overseas trading.

After slipping to around ¥107.20 in early Tokyo trading, hit by profit-taking, the greenback rose to around ¥107.30, thanks to real demand-backed buying.

The dollar fell below ¥107.10 later in the morning, reflecting a drop in the benchmark 225-issue Nikkei average, but the U.S. currency moved around ¥107.20 in the afternoon, supported by buying on dips.

“The dollar fluctuated within a narrow range as a result of concerns over restrictions on economic activities in California, despite expectations over the development of coronavirus vaccines,” an official at an asset management firm said.

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