TOKYO, May 26 (KUNA) -- The US dollar rose to the upper 122 yen range on Tuesday in Tokyo, the highest in seven years and 10 months, on expectations that the US Federal Reserve will raise interest rates within this year.
At 4:30 p.m. (0730 GMT), the greenback fetched JPY 122.54-56 compared with JPY 121.63-65 in Tokyo at 5 p.m. Monday. The dollar climbed to JPY 122.70 at one point in the afternoon, its highest level since July 10, 2007. Federal Reserve chair Janet Yellen said Friday she expects the American central bank to raise interest rates this year, citing recovery in the US economy. "I think it will be appropriate at some point this year to take the initial step to raise the federal funds rate target," she said in a speech. The weaker yen boosted buy orders for export-related shares in the Japanese stock markets.
The weak yen supports exports by making Japanese products more competitive overseas and increase the value of repatriated overseas earning. The Nikkei 225 Stock Average on the Tokyo Stock Exchange (TSE) gained 23.71 points, or 0.12 percent, from Monday to 20,437.48, the highest close since April 13, 2000.
The broader Tokyo Stock Price Index, which includes all First Section issues on the TSE, advanced 0.42 points, or 0.03 percent, to 1,659.57. (end) mk.rk