The dollar strengthened to levels above ¥104 in Tokyo trading Monday, backed in part by hopes for swift introduction of a novel coronavirus relief package in the United States.

At 5 p.m., the dollar stood at ¥104.13, up from ¥103.87 at the same time Friday. The euro was at $1.2119, down from $1.2150, and at ¥126.20, down from ¥126.26.

Carrying over its strength reflecting expectations for the stimulus package, the dollar rose to around ¥104.20 in the early morning.

The greenback later slipped through the ¥104 line, hit by selling on the 225-issue Nikkei average’s drop and media reports about Washington’s preparation for fresh sanctions against China over Beijing’s disqualification of Hong Kong legislators.

But after such selling ran its course, the dollar retook the threshold in late afternoon trading.

“The dollar attracted purchases after dropping too fast last week,” a Japanese Bank official said.

“The dollar-yen pair has been swayed chiefly by stocks,” an official at a foreign exchange margin trading service firm said. “Players are watching closely whether a stock sell-off will cause the dollar’s major correction.”

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