The dollar was firmer around ¥109.20 in Tokyo trading Monday, aided by hopes for the U.S. economic recovery, although a wait-and-see mood increased ahead of policy-setting meetings of the U.S. and Japanese central banks this week.

At 5 p.m., the dollar stood at ¥109.18, up from ¥109.04 at the same time Friday. The euro was at $1.1919, down from $1.1945, and at ¥130.16, down from ¥130.25.

Carrying over its strength from overseas trading late last week that reflected a rise in the key 10-year U.S. Treasury bond yield, the dollar moved around ¥109.10 in early Tokyo trading.

After easing below ¥109 later in the morning due to position-adjusting sales by Japanese exporters and selling spurred by a fall in the Treasury yield in off-hours trading, the greenback rose back above that mark thanks to buying by Japanese importers for funds for settlement and purchases inspired by a rebound in the benchmark U.S. long-term interest rate.

The U.S. currency climbed to a nine-month high around ¥109.35 in the afternoon as the Treasury yield topped 1.63%.

The dollar lost some of the gains in late trading, affected by investor concerns over the spread of the novel coronavirus in Europe.

With U.S. President Joe Biden signing the $1.9 trillion coronavirus relief package into law last Thursday and the country making progress in its coronavirus vaccination program, market players “grew more optimistic about the U.S. economy,” an official at a foreign exchange margin trading service firm said.

But “trading was lackluster, especially in the afternoon,” amid growing wait-and see sentiment in the run-up to the U.S. Federal Reserve’s Federal Open Market Committee meeting on Tuesday and Wednesday and the Bank of Japan’s two-day Policy Board meeting from Thursday, market sources said.

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