The Japanese currency fell as low as 120.08 in early trading in Tokyo from its 118.87 level late on Friday. The Tokyo market was closed on Monday for a public holiday.

The latest bout of selling was sparked by a comment from Powell, who said on Monday that the US central bank is prepared to raise rates in larger, half-percentage-point steps if needed to combat inflation.

The yen last traded below 120 in February 2016.

It had been about 115 yen versus the greenback just three weeks ago but has come under pressure as the US started raising interest rates. The Bank of Japan, meanwhile, is sticking to its ultra-easy monetary policy, making the yen less attractive against the dollar.

Yen bears have also been emboldened by comments from Bank of Japan Gov Haruhiko Kuroda on Friday indicating that he is not concerned about yen weakness.