The Japanese yen weakened to the upper 141 zone against the dollar for the first time in 24 years Tuesday afternoon in Tokyo, as investors bought the U.S. currency on persistent expectations of higher interest rates in the world's largest economy.

The yen has been rapidly depreciating on the view that the U.S. Federal Reserve will continue its aggressive interest rate hikes to cool the economy, thus widening rate differentials between Japan and the United States.

The Japanese currency on Tuesday hit its lowest level of 141.73 against the dollar since August 1998, having plunged by 26 yen this year.

At 5 p.m., the dollar fetched 141.53-55 yen compared with 140.50-60 yen in London and 140.57-58 yen in Tokyo at 5 p.m. Monday. U.S. financial markets were closed Monday for a national holiday.

The euro was quoted at $0.9975-9976 and 141.18-22 yen against $0.9915-9925 and 139.40-45 yen in London and $0.9910-9912 and 139.31-35 yen in Tokyo late Monday afternoon.

The U.S. currency topped the 141 yen line after the dollar fell against the yen and other Asian currencies the previous day, dealers said.

China's central bank said Monday it will reduce the deposit reserve ratio of the dollar to 6 percent from the current 8 percent to curtail the weakening of the yuan.

"The dollar continued to fall for half a day on Monday after the People's Bank of China took the move aimed at spurring buying of Chinese yuan," but the dollar was bought back on Tuesday afternoon, said Yuji Saito, head of the foreign exchange department at Credit Agricole Corporate & Investment Bank in Tokyo.

Tokyo stocks ended almost flat, supported by buying of some exporters on a weaker yen, but trading was limited due to fewer market participants following a national holiday in the United States on Monday.

The 225-issue Nikkei Stock Average ended up 6.9 points, or 0.02 percent, from Monday at 27,626.51. The broader Topix index finished 2.21 points, or 0.11 percent, lower at 1,926.58.

On the top-tier Prime Market, gainers were led by precision instrument, medical equipment, and iron and steel issues, while marine transportation, service, and air transportation issues were among major decliners.

Tokyo stocks rose briefly in the morning, with the Nikkei index gaining around 200 points as investors bought battered shares after both the Nikkei and Topix indexes fell for four trading sessions through Monday, analysts said.

Some exporters, including automakers, were bought as a weak yen fueled hopes of a rise in their overseas earnings when repatriated.

Toyota climbed 11.5 yen, or 0.6 percent, to 2,048.5 yen, and Subaru rose 18 yen, or 0.7 percent, to 2,490 yen.

Energy-related issues also drew buying as the Organization of the Petroleum Exporting Countries and its allies, known as OPEC Plus, said Monday they will cut oil production in October, helping ease concerns over a slowdown in oil demand, analysts said.

Oil refiner Eneos Holdings was up 2.9 yen, or 0.6 percent, to 518.0 yen.

But shares soon trimmed gains and fell into negative territory as investors locked in profits amid a lack of major trading cues.

The market's upside continued to be weighed down by concerns of a slowdown in the global economy as a result of monetary tightening by the Fed, as well as an expected rate hike by the European Central Bank later this week despite a grim outlook of the region.

Among Prime Market issues, advancing issues outnumbered decliners 883 to 850, while 104 ended unchanged.

Optical product maker Hoya, meanwhile, rose 380 yen, or 2.7 percent, to 14,470 yen on news reports that the company will join the Nikkei 225 Stock Average.

Trading volume on the Prime Market rose to 850.21 million shares from Monday's 811.92 million.

The yield on the bellwether 10-year Japanese government bond rose 0.005 percentage point from Monday's close to 0.235 percent, tracking gains in long-term U.S. Treasury yields during after-hours trading.