The Japanese yen shed more of its value Wednesday, sinking to a new 24-year low against the dollar. Investors are speculating that the interest-rate gap between Japan and the United States will widen, so they are buying dollars to lock in higher yields.
The yen briefly hit the upper-136 level to the greenback.
That is the weakest since 1998.
The yield on the 10-year US Treasury note has risen above 3 percent. That comes as the Federal Reserve is speeding up its pace of rate hikes to try to curb inflation.
The Bank of Japan, on the other hand, is sticking to its ultra-easy monetary stance. The yield on the benchmark 10-year Japanese Government Bond is hovering around 0.25 percent.
The BOJ is offering unlimited purchases of the bonds in an effort to keep long-term interest rates from rising.