The United States dollar has reached an almost eight-year high against Japan's yen, and several other competitor currencies, following an announcement made by Federal Reserve Chair Janet Yellen last week.
In her announcement, she mentioned that she expects to raise interest rates this year for the first time since 2006, Bloomberg Business reports.
"Looking at Yellen's comments from the end of last week, it seems like she's determined to act this year," Sumitomo Mitsui Trust Bank Ltd. representative Sumitomo Mitsui told the site.
"Until recently, I think people were only really buying the dollar against the euro, but it's clear now that you can buy the dollar against many different currencies."
Yellen originally announced last March that she would raise interest rates if the United States economy improves in forthcoming quarters. This was signaled by the Commerce Department's report of consecutive gains in orders for capital equipment.
The report cites alleged improvements in the housing market and an increase in demand for machinery producers.
"The worst is probably behind us," JPMorgan Chase & Co. economist Michael Feroli told Bloomberg Business.
"It's not a vigorous rebound, but it is getting better."
Janet Yellen was appointed to chair the Federal Reserve on February 3, 2014.
