Dollar rises to 150 yen after BOJ tweaks yield cap policy

The U.S. dollar rose above the 150 yen threshold in Tokyo on Tuesday, after a Bank of Japan decision to tweak its yield cap policy was perceived by the market as only a minor change to its easing policy.

Stocks ended higher, led by buying of bank and other financial issues on prospects of higher interest rates after the BOJ further adjusted its yield curve control framework, allowing 10-year Japanese government bond yields to rise above 1.0 percent.

The 225-issue Nikkei Stock Average ended up 161.89 points, or 0.53 percent, from Monday at 30,858.85. The broader Topix index finished 22.48 points, or 1.01 percent, higher at 2,253.72.

On the top-tier Prime Market, gainers were led by insurance, farm and fishery and food issues.

The yield on the benchmark 10-year Japanese government bond hit 0.955 percent, its highest level in around 10 years and five months.

© Kyodo News