* Dollar jumps 1.2 pct to 94.20 yen
* BOJ says to double monetary base in 2 years
* BOJ's Unanimous decision on many policy steps seen as
positive for dlr/yen
* ECB & BOE policy meetings also eyed
By Hideyuki Sano
TOKYO, April 4 The yen dropped sharply on
Thursday after the Bank of Japan announced aggressive easing,
saying it will double its holdings of bonds and stocks in two
The BOJ also said it would extend the average maturity of
bonds it holds to around seven years from around three years
now, dashing suspicions that it could underdeliver as it had
often in the past.
"All the menu the market has been talking has been delivered
so the market welcomed the decision," said Teppei Ino, currency
analyst the Bank of Tokyo-Mitsubishi UFJ.
The dollar jumped 1.2 percent to 94.21 yen, pulling
away from a one-month low of 92.57 hit on Tuesday, though it is
still off a 3-1/2 year peak of 96.71 set a few weeks ago.
THe BOJ also pledged more buying of riskier assets such as
equity exchange traded funds (ETFs).
"It seems there was a strong consensus among the board
members, which is good," said Kyosuke Suzuki, director of FX at
The dollar had come under pressure overnight after
disappointing U.S. private sector jobs data, which prompted
traders to ratchet down their expectations for Friday's payrolls
In addition, U.S. service sector growth fell to the slowest
in seven months, denting recent optimism on the U.S. economy.
ECB AND BOE
Also in focus later in the day are policy meetings of the
European Central Bank and Bank of England.
Neither central bank is expected to deliver any new stimulus
for now, although the ECB is likely to try and calm markets by
pledging to keep the banking system lubricated after Cyprus's
brush with financial meltdown.
Still the risk of any surprises, such as an interest rate
cut from the ECB or a restart of the BOE's bond-buying
programme, is keeping investors wary of the euro and sterling.
The euro was at $1.2845, flat on the day but not far
from a four-month trough of $1.2750 plumbed on March 27.
Sterling was little changed at $1.5130, having dipped
to a two-week low of $1.5075 on Wednesday.
The Australian dollar briefly gained to as high as $1.0495
, near its 10-week high of $1.0498 hit on Wednesday, on
surprise strength Australian retail sales. But it last stood
flat at $1.0453 as option-related offers at $1.05 were blocking
the currency's further advance.