In a surprise move, the Bank of Japan's Policy Board agreed Wednesday to further ease monetary policy by guiding the weighted average of the overnight call money rate down to around 0.25 percent per year.
The decision to further slash the key short-term interest rate shows that the central bank has finally decided to assist economic recovery through monetary measures.
In response, the dollar surged against the yen in currency markets, with the greenback at one point touching the mid-137 yen level in early London trading. The dollar stood at 133.39-42 yen in Tokyo late Wednesday.