Yen fell to its lowest level in 24 years

The dollar held a breath on Tuesday after a sharp rally. Still, it hit a 24-year high against the interest rate-sensitive Japanese yen, as US monetary policy tightens and the gap with low-interest rates in Japan widens.

The yen plunged to 140.97 per dollar, its lowest level since 1998, and was last traded at 140.91 per dollar.

The US currency has eased slightly from its highs against the euro and the British pound, although recession fears and the gas crisis limited the two currencies’ rally.

The euro rose 0.36 percent to $0.99605, after hitting a two-decade low of $0.9876 on Monday, with increasing odds of spending the winter without Russian gas.

Russia has indefinitely halted the flow of gas through the Nord Stream 1 pipeline to Germany, initially blaming an oil leak at a pressure plant, but linked Monday’s halt to Western sanctions.

Sterling was up 0.54 percent at 1.1585 against the dollar after sliding to a two-and-a-half year low of $1.1444 on Monday.

The dollar index fell 0.02 percent to 109.58, after rising to 110.27 on Monday.