The greenback was 0.43% higher at 126.40 yen after earlier reaching 126.56 for the first time since May 2002.
By contrast, European Central Bank President Christine Lagarde said around the same time that there was no clear time-frame for when ECB rates would start to rise, adding that it could be weeks or even several months after the central bank winds down its stimulus scheme in the third quarter. US Treasury yields resumed their climb overnight,following a two-day decline, further buoying the greenback.
Japanese Finance Minister Shunichi Suzuki warned on Tuesday that the government is watching yen moves and their impact on the economy “with a sense of urgency”.
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