The dollar rose to the strongest in almost seven years against the yen as the Federal Reserve moves toward interest-rate increases while the Bank of Japan adds to monetary stimulus.

The U.S. currency appreciated versus all of its 16 major counterparts as a measure of manufacturing rose more than estimated, before a report forecast to show employers added workers in the worlds largest economy. The euro fell to a two-year low against the greenback before the European Central Bank meets this week. Australias dollar had its biggest decline in more than two weeks as building approvals tumbled and Chinese manufacturing slowed. Brazils real slid.

The dollar rose 1.4 percent to 113.94 yen at 1:26 p.m. New York time and reached 114.22 yen, the highest since December 2007. The U.S. currency gained 0.4 percent to $1.2479 per euro after appreciating to $1.2440, the strongest level since August 2012. The yen slipped 1.1 percent to 142.20 per euro. Japans financial markets were shut for a holiday.

A JPMorgan Chase & Co. gauge of global currency volatility climbed to 8.30 percent, its highest level since Oct. 16.

Source : Bloomberg