Dollar near two-month yen high
The dollar rose to a near two-month high against the yen on Tuesday as analysts curbed expectations that the Bank of Japan will raise rates a quarter point this month.
The yen fell to ¥119.48 on the dollar from ¥118.78 yesterday, while ¥155.40 bought one euro and ¥231.56 one pound, the biggest falls against western currencies in seven days.
The falls followed positive German data, suggesting that euro-zone rates will rise soon and comments from Japan's finance minister that policy should "support" the yen.
"There is growing scepticism over aggressive rate hikes coming from the Bank of Japan, putting downward pressure on the yen," said Paresh Upadhyaya of Putnam Investments.
"The government isn't giving the bank the blessing to raise rates," he told Bloomberg.
The dollar was also supported by a sharp fall in the price of crude oil futures, providing the US currency with some lift against the euro and the Swiss franc.