Dollar hits new 7-year high above 116.11 yen

An employee of a foreign exchange trading company works in front of a monitor displaying the graph of the recent fluctuations of the exchange rates between the Japanese yen and the US dollar in Tokyo on Nov 4, 2014. -- PHOTO: REUTERS
An employee of a foreign exchange trading company works in front of a monitor displaying the graph of the recent fluctuations of the exchange rates between the Japanese yen and the US dollar in Tokyo on Nov 4, 2014. -- PHOTO: REUTERS

TOKYO (Reuters) - The dollar rose to a fresh seven-year high against the yen on Friday, bolstered by rising Japanese equities amid speculation that Japan's leader would call an election and delay a sales tax hike.

The dollar was up 0.4 per cent at 116.16 yen after rising as high as 116.20.

The Nikkei stock average was up 0.4 per cent in early trade. Many market participants, particularly foreign investors, sell yen to hedge their Japanese equities positions.