The dollar hovered at a seven-year high against the Japanese yen early on Wednesday, following a broad rally overnight, thanks in part to a big rise in U.S. yields as the economic outlook there outshone most of its rich world peers.
The dollar traded at 119.22 yen, after reaching 119.29, a high not seen since August 2007. It has been steadily climbing toward the 2007 peak of 124.14 since September 2012.
The greenback also gained on the euro, which dipped to a 1-1/2 week low of $1.2377, from Tuesday’s high of $1.2476. All of which lifted the dollar index to its highest in over four years at 88.668.