Yen dips to 15-year low

Source: Reuters.

The dollar gained as much as 0.23% to reach 137.78 yen for the first time since March 8. A move above 137.90 would be the highest level this year.

The yen's levels versus European currencies were more dramatic. The euro in early trade on Thursday reached 151.42 yen, a new high since September 2008. Sterling hit its highest since early 2016, and the Swiss franc is at its highest against the yen since at least 1982 according to Refinitiv data.

"The sign that the BOJ is not going to change its negative interest-rate policy any time soon gave the green light for speculators to put yen carry trades back on," said Naka Matsuzawa, chief Japan macro strategist at Nomura Securities.

In carry trades, investors borrow in low yielding currencies to invest in higher yielders. With Japanese rates pinned near zero, the yen has long been an attractive currency with which to fund such trades.

"The odds of the Fed continuing on the rate hike process, rather than rate cuts, is now a bit higher," Matsuzawa said.