The dollar climbed above ¥109 in Tokyo trading Thursday, on the back of the Nikkei stock average’s rally and real demand.

At 5 p.m., the dollar stood at ¥109.07, up from ¥108.60 at the same time Wednesday. The euro was at $1.1805, down from $1.1819, and at ¥128.76, up from ¥128.37.

After hovering in the ¥108.70 zone, the dollar rose close to ¥109 by midmorning on buying prompted by the key stock index’s rebound and a fall in U.S. long-term interest rates in off-hours trading, on top of Japanese importers’ purchases for settlement purposes.

The greenback struggled for direction for most of the afternoon session amid a dearth of market-moving factors. But the dollar jumped into ¥109 territory in late trading, following its appreciation against European currencies.

The dollar may not be able to go up further easily because it is “prone to selling by short-term players and Japanese exporters while staying in the range between ¥109.00 and ¥109.50,” a currency broker said.

On the other hand, the U.S. currency’s downside is supported by fiscal year-end purchases by Japanese importers, a domestic bank official pointed out.

The official also said that market attention was focused on whether U.S. President Joe Biden would address during his upcoming news conference details of proposed fiscal stimulus and whether he would mention tax hikes for wealthy Americans.

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