USD/JPY at Eight Year High Near 124

The dollar rose against most major currencies on Wednesday, hitting an eight-year peak against the yen on expectations the Federal Reserve would raise interest rates later this year due to signs the U.S. economy is recovering from an anemic first quarter.

The euro recovered from a one-month low versus the greenback following reports of progress between Greece and creditors toward a deal that would unlock cash for the debt-laden nation to avert default.

The dollar’s gains were also fed by automatic sell orders for the yen which had traded in a relatively tight range versus the greenback, traders said.