The U.S. dollar briefly rose above the 145 yen line Friday in Tokyo, reaching a level not seen since November, as the Japanese currency was sold in anticipation of a further widening in the interest rate differential with the United States.
The U.S. Federal Reserve has raised key interest rates to fight stubborn inflation, in contrast with the Bank of Japan that has maintained its ultraloose monetary policy.
The yen's depreciation is to "due to differences in monetary policy not only with the United States but also Europe," said Yuji Saito, head of the foreign exchange department at Credit Agricole Corporate & Investment Bank in Tokyo.
The yen selling against the dollar accelerated in Tokyo as stronger than expected U.S. economic data, including a revision of first-quarter gross domestic product, fueled speculation about prolonged interest rate hikes.
