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The dollar firmed above ¥104.50 in Tokyo trading late Wednesday, as news regarding a coronavirus vaccine brightened the market mood.

At 5 p.m., the dollar stood at ¥104.56-56, up from ¥104.33-33 at the same time on Tuesday. The euro was at $1.2069-2069, up from $1.1968-1968, and at ¥126.20-20, up from ¥124.87-87.

The dollar dropped to around ¥104.20 in early morning trading following a fall of the benchmark Nikkei stock average, but pared losses soon afterward thanks to buybacks.

The greenback then climbed above ¥104.50 after news reports that Britain has authorized the rollout of a coronavirus vaccine jointly developed by U.S. drugmaker Pfizer Inc. and Germany’s BioNTech.

The dollar moved in a narrow range as many market players opted to stand on the sidelines to check foreign stock price movements and Automatic Data Processing Inc.’s U.S. employment data for November, to be released later on Wednesday, an official of a brokerage house said.

An official at a foreign bank said that the “positive correlation between U.S. interest rates and the dollar is starting to collapse again,” suggesting that the dollar is likely to stay weak even if U.S. long-term interest rates rise from the current level of around 0.9%.

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