The dollar approached its highest levels in three months against other major currencies on Wednesday after data unexpectedly showing higher inflation in the United States led to a decline in bets that the Federal Reserve (the US central bank) would start lowering interest rates.
The dollar exceeded the 150 yen level for the first time since November, prompting Masato Kanda, Japan's chief currency official, to threaten intervention if the yen's rapid and very dangerous declines continue.
The price of the yen against the dollar is affected by long-term US Treasury bond yields, which rose overnight before recording a new peak in two and a half months at 4.332 percent on Wednesday.
The dollar has increased by about 10 yen since the beginning of this year.
The dollar index, which measures the currency's performance against six major currencies, including the yen, the euro and the British pound, rose to 104.77, remaining near the highest level in three months that it recorded on Tuesday at 104.96.
The euro settled at $1.0714 after falling to its lowest level in three months at $1.07005 at the end of trading on Tuesday.
There was no significant change in sterling, recording $1.25995, after falling about 0.3 percent on Tuesday. This was well above recent lows, with strong UK economic data suggesting the Bank of England will be slower than its major peers in cutting interest rates.
The Australian dollar rose 0.19 percent to $0.6466, recovering somewhat after falling to the lowest level in three months at $0.6443 at the end of trading on Tuesday.
As for cryptocurrencies, Bitcoin compensated for some losses after falling briefly from approximately $50,000 to $48,325 at the end of trading on Tuesday, recording $49,580.
