Dollar Tumbles Against The Yen

The dollar suffered the worst drop against the yen in more than 1-1/2 years Friday in a selloff on worries that the U.S. currency’s long-term rebound from its postwar lows two years ago finally is over.

Evidence of rising interest rates in Japan, speculation of no further rate increases in the U.S. and a warning from Japan’s finance minister that the dollar’s level remains too high all contributed.

It was the fifth straight day the dollar dropped against the yen and the selling dragged the dollar down against most other currencies. The decline left the dollar at a 4-1/2-month low against the yen, 3-month low against the Swiss franc and 1-month low against the mark.