Investing.com - The euro rose to more than three-year highs against the yen on Thursday and hit six-week highs against the dollar as radical monetary easing measures by the Bank of Japan bolstered demand for higher yielding assets.
EUR/JPY hit 130.82 during European afternoon trade, the pair’s highest since January 2009; the pair subsequently consolidated at 130.65, gaining 0.21%.
The pair was likely to find support at 129.39, Wednesday’s low and resistance at 131.00.
BoJ Governor Haruhiko Kuroda said Wednesday that the bank was ready to extend its monetary stimulus program beyond two years if necessary in order to reach its 2% inflation target.
Italy saw borrowing costs fall at an auction of government debt on Thursday as Japan’s stimulus measures overshadowed concerns over ongoing political uncertainty in the euro zone’s third largest economy.
Market sentiment was also boosted after data showed that China saw a large increase in bank lending in March, adding to signs of an economic recovery, one day after trade data indicated that domestic demand remains strong.
The euro was also higher against the dollar, with EUR/USD rising 0.51% to 1.3136, the pair’s highest since February 28.
The U.S. was to publish the weekly government report on initial jobless claims and data on import prices later in the day.
