The dollar rose back to around ¥104 in Tokyo trading Thursday, on the back of expectations for a large stimulus package to be compiled by the next U.S. administration.

At 5 p.m., the dollar stood at ¥104.03, up from ¥103.69 at the same time Wednesday. The euro was at $1.2141, down from $1.2203, and at ¥126.32, down from ¥126.53.

After moving around ¥103.80, the dollar topped ¥103.90 in midmorning trading on real demand-backed buying by Japanese importers.

The greenback was lifted further to levels a little shy of ¥104.20 by a media report that U.S. President-elect Joe Biden would implement a $2 trillion fresh coronavirus relief program after taking office.

In the afternoon, the dollar weakened to around ¥104 and, then, went sideways in the wake of the 225-issue Nikkei average cutting gains and U.S. long-term interest rates losing upward momentum.

Market players retreated to the sidelines to see if Biden would actually hammer out a massive stimulus policy later on Thursday, traders said.

“Attention was also focused on whether U.S. Federal Reserve Chairman Jerome Powell would say something about tapering” in a debate to be held the same day, an official at a foreign exchange margin trading service firm said.

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