Yen sinks to 20-yr low vs. dollar on interest rate differential

The yen continued its fall against the U.S. dollar Tuesday, trading at a 20-year low in the upper 132 zone on speculation that the interest rate gap will widen between Japan and the United States.

The Japanese currency sank to as low as around 132.90 against the dollar in the afternoon in Tokyo, the lowest level since April 2002, amid rising speculation that the U.S. Federal Reserve will continue its aggressive monetary tightening.

On the stock market, the 225-issue Nikkei Stock Average ended up 28.06 points, or 0.10 percent, from Monday at 27,943.95, its highest level since March 30. The broader Topix index finished 7.92 points, or 0.41 percent, higher at 1,947.03.

On the top-tier Prime Market, gainers were led by food, pharmaceutical, and information and communication issues.

© Kyodo News