The US dollar fell against the Japanese yen on Friday, after the very modest additional stimulus measures announced by the Bank of Japan disappointed many market participants.
The Bank of Japan said after the Friday meeting its intention to expand the list of assets to be acquired, so the dollar briefly soared against the yen. However, after it became clear that the regulator will not increase the target amount of monetary base as part of its economic stimulus program, the dollar fell.
After the announcement of the meeting outcome of the Japanese central bank, dollar climbed to 123.59 yen, but then it lost 0.5 %, dropping to 121.95 yen.
On Friday, the dollar fell against the euro as markets took a pause after the Fed's rate hike on Wednesday.
EUR/USD rose 0.30% to 1.0858.
The dollar strengthened its position against major world's currencies after on Wednesday, at the end of the two-day meeting, the Federal Reserve raised interest rates by a quarter percentage point to 0.25% -0.5%. The rise was the first in the United States since 2006.
Commenting on the decision, the head of the US central bank, Janet Yellen, said that further rate increase will be gradual and dependent on economic indicators.
On Thursday, the US Labor Department report reinforced optimism about, showing that the number of initial applications for unemployment benefits for the week ending December 11 fell 11 000 to 271 000, from 282 000 the previous week.
Analysts had expected last week, the number of appeals will only fall by 7 000 to 275 000.
The USD index, which tracks the US currency against a basket of six major rivals, rose 0.4 % to 98.809, retreating slightly from 99.294, the two-week peak reached during the night.
On Thursday, the index gained 1.2 %, which was the most significant rise in the previous month and was followed by the decision of Committee of the US Federal Reserve about first rate hike in almost a decade.