The dollar index rose on Wednesday after the Federal Reserve ended its monthly bond purchase program and signaled confidence the U.S. economic recovery would remain on track despite signs of a slowdown in many parts of the global economy.
The dollar index rose 0.6 percent after the announcement, having slipped on Tuesday.
Over the past couple of weeks, a recovery in global equities and investor risk sentiment has weighed on the Japanese currency, helping the dollar bounce back from a one-month low near the 105.19 yen touched in mid-October.
``The Fed's announcement is exactly what everyone expected. The Fed sees enough improvement in economic activity to end QE, but at the same time, it will keep low rates because it isn't yet seeing what it wants to see as far as inflation goes. That's what everyone expected. Policy is still very accommodative," said Wayne Kaufman of Phoenix Financial.