The yen fell to a minimum of seven years against the dollar this month, after the Bank of Japan surprised markets by restarting the program of monetary stimulus in an effort to support the recovery fluctuating economy.
Last Friday, the USD / JPY reached its highest level of 112.45, the highest since December 2007. The EUR / USD fell to a minimum of two years of 1.2484. The dollar's gains against the yen pushed the US dollar index, which tracks the performance of the greenback against a basket of other major currencies, the most of the last four years. The BoJ's move has fueled expectations that the European Central Bank must now implement quantitative easing measures to counter the threat of deflation and sustain growth in the euro zone.
On the other hand, the Federal Reserve has withdrawn the quantitative easing program in October declaring himself confident about the US economic recovery. The Fed has reassured markets on the stability of interest rates that will remain so for an "extended period." The shares rose following the announcement of the BoJ in the last trading day of the month. The Nikkei rose 4.8%, while in the US the Dow Jones closed at a record high, as well as the S & P 500.
