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The dollar surpassed ¥110 for the first time in roughly a year in Tokyo trading Tuesday.

At 5 p.m., the dollar stood at ¥110.22, up from ¥109.65 at the same time Monday. The euro was at $1.1735, down from $1.1784, and at ¥129.35, up from ¥129.23.

The dollar climbed close to ¥110 by noon, thanks to buying by Japanese importers for settlement purposes and a rise in U.S. long-term interest rates on the back of growing hopes for an early recovery in the U.S. economy.

After active buying ran its course, the greenback struggled for direction. But the U.S. interest rates’ further ascent and the dollar’s appreciation against European currencies pushed the U.S. currency up above the ¥110.20 line in late afternoon trading.

The dollar got a boost from U.S. President Joe Biden’s pledge to rapidly expanding coronavirus vaccination eligibility, which is expected to let the U.S. economy recover from the virus crisis ahead of the European economy, traders said.

An official at a foreign exchange margin trading service firm pointed out that the dollar was also supported by speculation that an infrastructure spending package to be announced by Biden on Wednesday “will get the U.S. economy back on the growth path.”

“The dollar still has room to climb,” the official said.

A Japanese official agreed, saying, “Players are in a mood for testing the dollar-yen pair’s topside.”

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