Dollar hits 6-yr high above 120 yen on possibility of more rate gap

© Kyodo News

The U.S. dollar climbed into the 120 yen range on Tuesday in Tokyo for the first time since February 2016, after the U.S. Federal Reserve hinted at further raising its key interest rate to tackle soaring inflation, while Tokyo stocks ended at the highest point in over a month.

At 3 p.m., the dollar fetched 120.31-34 yen compared with 119.43-53 yen in New York at 5 p.m. Monday.

The euro was quoted at $1.0981-0982 and 132.11-16 yen against $1.1010-1020 and 131.57-67 yen in New York late Monday afternoon.

The 225-issue Nikkei Stock Average rose 396.68 points, or 1.48 percent, from Friday to 27,224.11, its highest level since Feb. 17. Japanese financial markets were closed Monday for a national holiday.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 24.47 points, or 1.28 percent, at 1,933.74.

Gainers were led by mining, insurance and wholesale trade issues.