The Japanese yen hit a fresh trough of 149.96 per dollar, its lowest since August 1990, and last bought 149.92.
"Given that Treasury yields have moved decisively above 4%, were it not for the threat of intervention then I think dollar/yen would already be trading north of 150."
The benchmark U.S. 10-year Treasury yield rose to 4.154%, its highest level since mid-2008, while the two-year Treasury yields touched a 15-year high of 4.582%.
It bottomed at 7.2794 per dollar, the lowest level since such data first became available in 2011, and last traded 7.2615.
It had hit an almost two-week high of $0.5719 on Tuesday, following release of a hot inflation data, prompting bets of a more aggressive central bank rate hike.