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Tokyo -The dollar broke the ¥110 barrier for the first time in more than six years on Wednesday, following a string of generally upbeat US data and expectations of more Bank of Japan monetary easing.
The greenback soared as high as ¥110.09 in late morning Tokyo trade, its highest level since August 2008 and up from ¥109.64 in New York, as investors turn their attention to a key US jobs report later this week.
The dollar has been rising against the yen and euro as the US Federal Reserve's stimulus tapering policy increasingly diverges with expectations for fresh easing moves by Japanese policymakers and the European Central Bank.
Hopes for an earlier-than-expected US interest rate hike have been drawing investors back to the dollar amid signs that a recovery in the world's number one economy was taking hold.
But the employment figures on Friday will be crucial to cementing that optimism after US consumer confidence fell for the first time in four months and weakness in Chinese manufacturing stoke renewed fears about the global economy.
On Wednesday morning, the Bank of Japan released its Tankan quarterly business confidence survey which pointed to a sluggish improvement following a sharp drop in the previous three months as a sales tax hike slammed the brakes on the world's number three economy.
The closely watched report came after separate figures pointed to poor industrial production and household spending in Japan following the April 1 levy hike to 8.0% from 5.0%, the country's first in 17 years.
In other trading, the euro weakened to $1.2608 against $1.2631 in the US, while the single currency strengthened to ¥138.68 against ¥138.50.
