The dollar was firmer around ¥104 in Tokyo trading Tuesday amid a risk-on mood induced by robust stock markets in and outside Japan.

At 5 p.m., the dollar stood at ¥104.00-04, up from ¥103.74-77 at the same time Monday. The euro was at $1.2104-2104, up from $1.2067-2067, and at ¥125.88-88, up from ¥125.21-22.

Supported by buying by Japanese importers, the dollar climbed above ¥103.70 in midmorning trading.

The U.S. currency then rose to ¥104 around noon, with market players’ risk appetite sharpened by rises in U.S. stock futures in off-hours trading and in the 225-issue Nikkei stock average.

“Yen selling outpaced dollar selling” amid a risk-on mood, an official at a foreign exchange margin trading service firm said.

In the afternoon, the greenback moved narrowly around ¥104 as market participants retreated to the sidelines to wait for a U.S. Senate confirmation hearing for Treasury Secretary nominee Janet Yellen later Tuesday.

Both the dollar and the yen are facing selling pressure amid growing risk appetite that reflects ballooning hopes for large-scale U.S. fiscal measures ahead of Yellen’s hearing and the inauguration of U.S. President-elect Joe Biden on Wednesday, an official at a Japanese bank said.

“While market players are watching Yellen’s hearing closely for any statements on the dollar, the weaker dollar trend is likely to continue if she says she will let the market decide (the moves of the U.S. currency),” the official added.

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