The U.S. dollar surged above 130 yen to hit a three-year high in thin Tokyo trading Tuesday. At 5 p.m., the dollar was quoted at 130 yen.74-77, compared with 129 yen.85-95 at 3 p.m. Monday in New York and 129 yen.37-40 late Friday in Tokyo.

Japan's financial markets were closed Monday for a national holiday.

It was the first time since October 1998 that the dollar has reached the 130 yen level in Tokyo.