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The dollar climbed to around ¥110.50 in Tokyo trading Tuesday, helped by advances of the benchmark Nikkei stock average and U.S. interest rates.

At 5 p.m., the dollar stood at ¥110.48, up from ¥110.03 at the same time Monday. The euro was at $1.1901, up from $1.1883, and at ¥131.49, up from ¥130.74.

After trading at around ¥110.30 early in the morning following gains in overnight foreign trading, the dollar firmed to around ¥110.50 on the Nikkei’s sharp rally and higher U.S. long-term interest rates in off-hours trading.

The upward pressure eased in the afternoon as the Nikkei became top-heavy and market players took to the sidelines ahead of congressional testimony by U.S. Federal Reserve Chairman Jerome Powell later the same day.

The greenback was capped by selling to lock in profits, after the U.S. currency rose significantly from the previous day’s low of ¥109.70, traders said.

Traders also took into account the dollar’s recent high of around ¥110.50 marked soon after Jim Bullard, president of the Federal Reserve Bank of St. Louis, made hawkish comments last week.

“(Powell’s) congressional testimony is unlikely to have a big impact on the dollar-yen rate,” an official at a foreign exchange margin trading service firm said, noting that the Fed chairman, according to prepared remarks disclosed in advance, is expected to reiterate that the recent pickup in inflation is temporary.

Meanwhile, a currency broker said that “answers to questions after his testimony may reveal hints about tapering” of the U.S. central bank’s quantitative easing measures.

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