Dollar hits 7-month high above 141 yen on diverging U.S., Japan rates

The U.S. dollar rose to a seven-month high above the 141 yen line Thursday in Tokyo, after a hawkish forecast by the U.S. Federal Reserve fanned speculation that the interest rate gap between Japan and the United States will widen.

The dollar firmed further in the afternoon, after the Fed on Wednesday signaled potential interest rate increases following a pause at its latest meeting.

On the stock market, the 225-issue Nikkei Stock Average ended down 16.93 points, or 0.05 percent, from Wednesday at 33,485.49. The broader Topix index finished 0.56 point, or 0.02 percent, lower at 2,293.97.

Decli...