Photo taken in Tokyo on Oct. 3, 2023, shows a monitor screen displaying the Japanese yen trading in the 150 zone against the U.S. dollar. (Kyodo)

The U.S. dollar briefly rose above the 150 yen line Tuesday in New York trading, reaching a level not seen since October 2022 amid expectations that the Federal Reserve will likely keep interest rates high for a prolonged period.

The dollar quickly dropped below 147.50 yen in volatile trading after topping the crucial line, as caution grew stronger over a possible yen-buying currency intervention by Japanese authorities to stem the yen's depreciation.

Japan conducted its yen-buying, dollar-selling intervention on Sept. 22 last year for the first time in 24 years as the Japanese currency crossed 145 to the dollar.

It also carried out "stealth" foreign exchange interventions in the following month, including one after the U.S. currency topped the 150 yen line.

The greenback's gains reflect prospects of a wider interest rate gap between Japan and the United States due to their central banks' diverging policies.

The Fed keeps interest rates at an elevated level to curb inflation while the Bank of Japan maintains its ultraloose monetary policy.

Japanese Finance Minister Shunichi Suzuki said earlier Tuesday that the government is closely watching volatility in foreign exchange markets and will respond appropriately to rapid movements, noting the yen has been depreciating significantly.

"It's important that currency movements are stable and reflect fundamentals," he said at a press conference after a Cabinet meeting in Tokyo. "We will continue to monitor developments with a heightened sense of urgency and respond with all possible measures."

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