The U.S. dollar plunged against the yen to the 142 range in New York on Wednesday after the country's central bank continued to keep key interest rates unchanged and even hinted at cuts next year.
The dollar was traded at 145.34-44 yen at 8:40 a.m. in New York, but took a steep dive following the announcement by the Federal Reserve, which prompted dollar-selling and yen-buying amid the prospect that the gap in borrowing costs may narrow.
At 5 p.m. in New York, the dollar was quoted at 142.84-94 yen after briefly hitting 142.65 yen, compared with 145.81-82 yen at 5 p.m. Wednesday in Tokyo.
The Fed's decision to maintain the federal funds rate at a 22-year high of 5.25-5.50 percent also weakened the dollar against the euro, which bought $1.0869-0879 at 5 p.m. in New York against $1.0785-0786 late Wednesday in Tokyo.
The Federal Open Market Committee, the Fed's rate-setting panel, said Wednesday that the median forecast for the rate at the end of 2024 stands at 4.6 percent, signaling three quarter-point cuts from current levels.
