The U.S. dollar rose to its highest level versus the Japanese yen this century as traders bought the rampant buck in anticipation of more sharp rate rises from the Federal Reserve.

The greenback rose 1.3% to 139.20 yen USDJPY, the cheapest price for the Japanese currency since 1998. The yen has fallen by 21% against the dollar so far this year, a sharper move than the 12% drop for the euro and the 13% decline for the British pound.

The…