The dollar shot past the key level of 130 yen after the BOJ strengthened its commitment to keep interest rates ultra-low
The dollar rose past the psychological level of 130 yen on Thursday for the first time since 2002, after the Bank of Japan (BOJ) doubled-down on its super-low yield policy
There had been some market speculation the BOJ might step back a little given inflation was rising and other major central banks were tightening, but it showed no hesitation
The euro dropped to its weakest since 2017 after Russia halted gas supplies to Bulgaria and Poland, and investors fretted more about the region's economy
The rouble soared to a more than two-year high against the euro in Moscow trade on Wednesday, supported by existing capital controls and upcoming income tax payments
The euro slipped to a five-year low of $1.05860 after Russia's Gazprom said it would cut gas supply to Poland and Bulgaria, as the crisis in Ukraine deepened
ECB President Christine Lagarde struck a dovish tone by saying the central bank might need to cut its growth outlook
Federal Reserve Chairman Jerome Powell said on Thursday a 50-basis-point hike was on the table at its next meeting in May
The European single currency fell to $1.0758, the lowest level since April 2020. It was last down 0.53% at $1.0827
Lagarde said there was no clear timeframe for when rates would start to rise, adding it could be weeks or even several months after the end of stimulus
Interest rates will, however, only go up "some time" after the end of bond buys and they will be gradual, the ECB added
U.S. Treasury yields have soared on expectations of more aggressive tightening by the Federal Reserve, boosting the greenback
Meanwhile, the dollar has been pushed higher by rising U.S. yields and expectations the Federal Reserve will act quickly to stem inflation
The euro briefly flickered as high as $1.0955 in thin early hours of the Asia session, before settling about 0.15% higher than Friday's close at $1.0890. It was also firmer on sterling and the yen.
The dollar index rose as high as 100 in early European trading hours, its best level since May 2020. It later lost some momentum and was last broadly flat at 99.844.
Russia said Wednesday that it made a debt payment in rubles this week, a move that may not be accepted by Russia's foreign debtholders and could put the country on a path to an historic default
The dollar index, which measures the greenback against six peers, rose 0.12% to 99.600, after touching its highest since May 2020 of 99.759
Commodity currencies rallied in choppy trading on Tuesday led by the Australian dollar, boosted by the prospect of policy tightening by the Reserve Bank of Australia (RBA), while the euro fell.
The euro's biggest losses on Tuesday were against the Swedish crown and Swiss franc, with falls of 0.4% and 0.2% respectively
By Kevin Buckland