USD/JPY at 104 as U.S. Dollar Enjoys Rally

The dollar was hoisted to a more than five-year high against the yen on Thursday after the Federal Reserve started to dial back its massive bond-buying stimulus, giving markets a strong signal that the U.S. economy was growing at a healthy clip.

The euro also came under pressure against the greenback, hitting a two-week low, and analysts at BNP Paribas continued to recommend short euro/dollar strategy.

The U.S. central bank said it would reduce its monthly asset purchases by $10 billion, bringing them down to $75 billion. The taper will be equally split between mortgage-backed securities and Treasury bonds.


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