US dollar hits 5-year high of JPY 104 level in Tokyo

The US dollar hit a five-year high against the yen into the lower-104 yen range on Thursday in Tokyo after the US central bank announcement to scale back its massive stimulus program from next month. At 3:25 p.m. (0625 GMT), the greenback fetched JPY 103.93-96 compared with JPY 104.23-33 in New York and JPY 102.99-103.00 in Tokyo at 5 p.m. Wednesday. The dollar climbed to JPY 104.37 at one point in the morning, its highest level since October 6, 2008. On Wednesday, the US Federal Reserve decided to cut its aggressive monthly bond-buying program from USD 85 billion to USD 75 billion starting from January, citing a pick-up in the economy. Reflecting the weaker yen, buy orders overwhelmed Tokyo stocks, sending the benchmark index to end at its highest level in six years. The Nikkei 225 Stock Average on the Tokyo Stock Exchange (TSE) gained 271. 42 points, or 1.74 percent, from Wednesday to 15,859.22, the highest finish since Dec. 12, 2007. The broader Tokyo Stock Price Index, which includes all First Section issues on the TSE, also advanced 12.58 points, or 1.01 percent, to 1,263.07.