TOKYO , Jan. 21 -- ( Kyodo ) _ The U.S. dollar climbed into the upper 104 yen range in Tokyo on Tuesday, as traders remained confident about the divergence of Japanese and U.S. central bank policy, and drew optimism from buoyant Japanese stocks. At 5 p.m. , the dollar fetched 104.67-68 yen compared with 104.21-23 yen in Tokyo at 5 p.m. Monday . It moved between 104.15 yen and 104.69 yen during the day, changing hands most frequently at 104.45 yen . The euro was quoted at $1.3546-3548 and 141.79-83 yen against $1.3545-3547 and 141.16-20 yen in Tokyo late Monday afternoon. U.S. markets were closed Monday for a holiday. The U.S. dollar climbed to the upper 104 yen range during Tuesday morning trading in Tokyo in tandem with sharp gains in Tokyo stocks, stabilizing there after briefly dipping in the afternoon. With a lack of major events during the day, the upbeat sentiment in the stock market as well as yen-selling by Japanese importers drove the currency's fall against the dollar and euro, said Shinichiro Kadota , a foreign exchange strategist at Barclays Bank . No surprises are expected from the Bank of Japan's two-day policy meeting from Tuesday, but market participants will be paying attention to its economic forecast to be released on Wednesday, Kadota said. "The BOJ's policy outlook, particularly regarding easing, is not expected to swing by a large degree this time," he added. He said the underlying trend for the yen's depreciation against the dollar looks intact, with market participants anticipating the BOJ and the U.S. Federal Reserve will maintain divergent monetary policies, despite recent weak U.S. jobs data briefly denting expectations that the Fed will taper its quantitative easing. "Since the December jobs data release on Jan. 10 , various statements coming out of the Fed have largely reassured traders that the tapering won't be delayed," Kadota said. Expectations for continued tapering in the U.S. media overnight underpinned the dollar on Tuesday by "confirming the market's sentiment," he added. China's GDP growth, announced on Monday, fell broadly within market expectations, while the mixed nature of other Chinese economic indicators did not come as a surprise, Kadota said. "While market participants are acting on the premise that China's economy will not speed up its growth now, few are harboring major concerns about China , so mixed indicators have not significantly dampened risk appetite at this stage."
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