The dollar strengthened to around ¥109.30 in Tokyo trading Friday, on the back of hopes for an early recovery in the U.S. economy.

At 5 p.m., the dollar stood at ¥109.32, up from ¥109.07 at the same time Thursday. The euro was at $1.1785, down from $1.1805, and at ¥128.86, up from ¥128.76.

Extending its gains in overseas trading amid growing economic recovery hopes following U.S. President Joe Biden’s pledge to double coronavirus vaccine shots from the previously planned level, the dollar rose to around ¥109.30 in the midmorning thanks to the 225-issue Nikkei average’s jump and buying by Japanese importers for settlement purposes.

But the dollar soon became sandwiched between buying and selling both prompted by the greenback’s approach to its recent highs around ¥109.50, a Japanese bank official said.

In the afternoon, the U.S. currency moved tightly amid a dearth of fresh incentives.

Although its downside remains solid, “the dollar is attracting fiscal year-end activities such as position-squaring and profit-taking,” a currency broker said.

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