NEW YORK, Feb 20: The yen fell for a third day against the dollar and euro on Tuesday as investors conceded that an interest rate hike by the Bank of Japan is unlikely to curb the selling of the Japanese currency.

The dollar recovered from a six-week low touched against the euro earlier in the day as investors discounted an escalation in tensions between Iran and the United States.

Midday in New York, the dollar had risen to 120.01 yen, up 0.4pc and moving further away from the six-week low of 118.96 set last week.

The euro was up 0.3 per cent at 157.79 yen, approaching its record high of 159.00 set last week. The euro was little changed against the dollar at $1.3150.

—Reuters