Yen dropped against dollar and other major currencies, after the Bank of Japan decided to expand its lending program by 60 trillion to 70 trillion yen per year, in order to realize the targeted inflation of 2%.

BOJ also doubled a core part of a growth lending program to 7 trillion yen, leading to forecasts that next month will witness more stimulus measures added to financial markets. Hence, the government expects the new sales tax increase in April to have a strong negative impact on the economy, so it needed further monetary stimulus to overcome such negative effect.

 Nevertheless, USD/JPY gained for the second straight day to record a high of 102.49, while it was trading near 102.05 levels before the released statement. Euro also picked up against yen to reach the highest in three weeks at 140.55 from a low of 139.87.

Regarding the Australian dollar, it inclined against the federal currency, backed by the RBA minutes. The Reserve Bank ensured in its statement that interest rate will be kept at its record low to support economic growth.

AUD/USD rose to the highest in five weeks at 0.9079, while it was trading around 0.9036 levels before the released data.

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