The Japanese yen fell to as low as 132.60 yen per dollar on Tuesday, its lowest level since April 2002, as market participants anticipated a further widening interest rate gap between the United States and Japan.
The dollar was buoyed by the 10-year Treasury yield’s rise to 3.05 percent for the first time in nearly four weeks. The currency pair was last trading at 132.12, up 0.17 percent.
The U.S. Federal Reserve raised its key interest rate by a half percentage point last month as part of monetary policy tightening. But the Bank of Japan (BOJ) maintained that monetary tightening remains off the table for the Japanese economy….