Yen drops to 144 per dollar

The yen continues to plummet, at one point falling to the 144-yen per dollar level on Wednesday. That's the weakest it's been since August 1998. The Japanese currency has dropped by around 7 yen over the past 10 trading days.

The drop in value comes after a non-manufacturing business activity index in the US posted a stronger-than-expected figure on Tuesday.

The US 10-year bond yield went up to over 3.3 percent following the announcement, the highest rate since June 16th.

Market players believe the Fed will continue to raise interest rates, despite the risk of cooling the economy.

The widening interest-rate gap between Japan and America has prompted traders to sell their yen and seek the higher yield of the dollar.

The yen's depreciation has picked up pace since Fed Chair Jerome Powell made it clear in a speech on August 26th he would keep raising rates. Meanwhile, the Bank of Japan has indicated it plans to continue with its massive easing measures.

Analysts say they expect the yen sell-off to continue for as long as interest rates remain low in Japan.