Possibility of 50 Basis Point Fed Hike Pushes Yen and Euro Down

A U.S. hundred dollar bill and Japanese 10,000 yen notes are seen in this photo illustration in Tokyo, Japan, on Feb. 28, 2013. Shohei Miyano/Reuters

LONDON—The dollar rose on Tuesday as Federal Reserve Chair Jerome Powell put the possibility of 50 basis point rate hikes on the table, while the yen fell below the psychological 120 level as the Bank of Japan reiterated its support for ultra-loose monetary policy.

The euro was also under pressure, sliding to an almost one-week low versus the dollar.