Yen is falling after the BoJ kept interest rates low

The yen fell after the Bank of Japan on Friday kept interest rates ultra-low and predicted inflation would slow later this year, reiterating its monetary easing stance that runs counter to the tightening policies of other central banks around the world.

As widely expected, the BoJ kept the short-term interest rate at -0.1% and the 10-year bond yield at zero% under its yield curve control policy.

The yen fell sharply after the decision and hit a 15-year low of 153.97 against the euro, after falling more than 1 percent in the previous session.

The Japanese currency fell in the latest trading 0.25 percent to 140.66 against the dollar.

As for the euro, it is heading to record the best week in months after the European Central Bank raised borrowing costs to the highest level in 22 years and indicated more rate hikes in the future.

That and some weak US economic data sent the dollar broadly lower as traders cut their bets on how much higher US interest rates would be needed.

The euro settled near a one-month high of 1.0942 against the dollar, after rising more than 1 percent on Thursday after the European Central Bank raised interest rates.

The British pound rose to its highest level in more than a year, recording 1.2794 against the dollar in early Asian trade, and was last traded at 1.2784 against the dollar, as dealers bet strongly that the Bank of England will likely raise interest rates for the thirteenth meeting in a row next week.

The dollar index fell to a one-month low of 102.08 points against a basket of currencies on Thursday, after the release of weak data on the US economy. And settled in the latest trading at 102.21 points.

The Australian dollar also settled at 0.6882 against the dollar, and the New Zealand dollar rose 0.02 percent to 0.6236 against the dollar.