TOKYO: The yen resumed its decline against the dollar in Tokyo Friday after rising on news of a powerful aftershock jolting a northeastern region still reeling from the March 11 earthquake and tsunami.
The euro surged against the greenback after the European Central Bank delivered a widely expected 25-basis-point rate hike, hitting its highest level over a year on buying by institutional investors, dealers said.
The dollar fetched 85.17 yen after falling to 84.86 yen overnight, amid signs that damage from Thursday's 7.1 magnitude aftershock appeared to be limited, despite the death of three people and injuries to around 100.
The euro was higher against the dollar at $1.4405 from $1.4306, its highest since January 19 2010.
The single currency also gained against the yen, fetching 122.43 yen from 122.35
The single currency had dipped in earlier trade after ECB chief Jean-Claude Trichet disappointed euro bulls by playing down the prospect of further hikes in the near future.
Still, the euro-dollar pair remained supported by persistent expectations that the ECB will raise rates again later this year, said Kuniyuki Hirai, manager at foreign exchange division at Bank of Tokyo-Mitsubishi UFJ.
"Although ECB President Trichet didn't clarify that Thursday's 25-basis-point hike signalled the start for a string of rate hikes, this does not mean there will be no further rate hikes," Hirai said.
"This is why the euro has recovered after initial falls and is well-bid," he told Dow Jones Newswires.
The Australian dollar again climbed versus the greenback after hitting a fresh record high above 1.0500 in late Thursday trading. It fetched $1.0507 in Tokyo Friday.
"It was spurred on by a blockbuster Australian jobs report (Thursday) and sharp gains in industrial metals prices overnight," said John Kyriakopoulos at National Australia Bank.
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