Dollar Extends Gains as Dovish BOJ Ripples Through FX World

  • Japanese yen tanks beyond 130 for the first time since 2002
  • Bank of Japan’s sticks with easing in contrast to hawkish Fed
WATCH: The BOJ sparked a sharp slide in the yen by doubling down on its promise to defend a rock-bottom yield target that is putting pressure on the currency. Enda Curran reports.Source: Bloomberg
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The ascendant dollar got a fresh boost from a dovish Bank of Japan statement Thursday, which pushed the yen beyond a key psychological level and weighed on currencies from Asia to Europe.

A Bloomberg gauge of the greenback climbed to the highest level in nearly two years, while the dollar-yen climbed as much as 1.4% to just above the closely-watched 130 level for the first time since 2002. The BOJ doubled down on its bond buying operations to keep a lid on rising yields.