Dollar Hits New 20-Yr High above 129.80 Yen

Economy Politics

Tokyo, April 28 (Jiji Press)--The dollar shot up above 129.80 yen to hit a fresh 20-year high in early afternoon trading in Tokyo on Thursday, after the Bank of Japan announced a decision to keep its ultraeasy monetary policy unchanged.

The greenback stood at 129.69-70 yen at 1 p.m., up sharply from 127.98-99 yen at 5 p.m. Wednesday.

At its two-day policy-setting meeting through Thursday, the BOJ decided its policy unchanged and said that it will conduct money market operations to buy unlimited amounts of 10-year Japanese government bonds at a fixed rate of 0.25 pct every business day "unless it is highly likely that no bids will be submitted."

Following the BOJ announcement, dollar purchases gained steam on growing expectations for wider interest rate gaps between the United States and Japan. Japan's central bank demonstrated its resolve to curb long-term interest rates in the country, market sources said.

The dollar's surge came also because Japanese importers rushed to buy the U.S. currency for yen ahead of Japan's Golden Week holiday period from Friday, the sources added.

[Copyright The Jiji Press, Ltd.]

Jiji Press