(File photo/Mainichi)

       TOKYO (Kyodo) -- The U.S. dollar climbed into the upper 115 yen range on Tuesday in Tokyo, its highest level since January 2017, as dollar buying was fueled by increased risk appetite following a surge in Tokyo stocks.

       The dollar was trading at about 115.80 yen at around 1:50 p.m. in Tokyo after fetching 115.28-38 yen in New York at 5 p.m. Monday. Tokyo markets were closed Friday and Monday for year-end and New Year holidays.

       At 2 p.m., the 225-issue Nikkei Stock Average gained 531.59 points, or 1.85 percent, from Thursday to 29,323.30.

       In addition to rising stocks, the dollar advanced against the yen on growing expectations for an early interest rate hike by the U.S. Federal Reserve after an overnight rise in U.S. Treasury yields, dealers said.

       "Treasury yields jumped overnight, fueling expectations that the interest rate gap between the United States and Japan will widen," said Takuya Kanda, senior researcher at the Gaitame.com Research Institute.

       Japanese importers also bought the U.S. currency for settlement purposes, dealers said.

       Kanda said the dollar will continue to be bought as the U.S. central bank is expected to raise interest rates several times this year.

       A weaker yen enables exporters to earn more if they repatriate overseas profits and helps to sharpen the competitiveness of Japan-made products abroad, but it will likely lead to higher energy and food prices in the country, squeezing households.

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