USD/JPY Up Through 118 after Central Banks

The yen slid on Thursday, striking seven-year lows against the dollar and a six-year trough versus the euro as speculators poured into carry trades funded by a tide of super-cheap liquidity from the Bank of Japan.

The dollar romped as far as 118.09 yen, up over a full yen in 24 hours and almost 10 yen since the BOJ sprang its surprise stimulus steps on the market at the end of October.

Likewise, the euro shot to 148.05, having gained 1.1 percent on Wednesday and more than 10 yen in 14 sessions.  The dollar had a brief hiccup when minutes of the Federal Reserve’s last policy meeting struck a more dovish tone than its post-meeting statement had.

CNBC

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