The greenback was higher against the yen Tuesday with mounting expectations for a rate hike backing the dollar.
USD/JPY hit 124.48 during U.S. morning trade, the pair's highest since June 10; the pair subsequently consolidated at 124.10 easing 0.14%.
The dollar has steadily appreciated over the last two weeks. Meanwhile, currency strategists at Brown Brothers Harriman said short-term investors were selling dollars to lock in profits. But while it was slightly weaker on the day, the dollar remained within its recent trading range against most of its rivals.
The greenback was backed after Federal Reserve Chair Janet Yellen said last week that the Fed is likely to raise rates "at some point this year."
Higher interest rates would raise the return on dollar-held deposits, making them more appealing to global investors.
Demand for the safe-haven yen weakened after the Greek turmoils eased. Greek banks reopened on Monday following a forced three-week closure, with restrictions on cash withdrawals.
Currencies that are heavily impacted by commodity prices - including the Canadian dollar and Australian dollar - were flat, reflecting the action in crude-oil and gold prices. Both commodities were little-changed from Monday’s plunge.
Of the commodity-dependent currencies, the New Zealand dollar outperformed for the second straight day. The currency was up 0.5%, from 65.74 cents to 66.05 cents. USD/NZD was last at 1.514230.
