Tokyo - The dollar hit a near eight-year high against the yen on Tuesday on mounting speculation that the Federal Reserve will lift interest rates by mid-year as the US economy picks up strength.
In Tokyo, the greenback briefly surged to a high of ¥122.02 in mid-day trading, around levels not seen since July 2007.
The dollar later settled back to ¥121.68, but was still up from ¥121.15 in New York.