Dollar extends gains against yen

The dollar extended gains against the yen today after global central banks led by the Federal Reserve announced coordinated measures…

The dollar extended gains against the yen today after global central banks led by the Federal Reserve announced coordinated measures to address the money market's liquidity problems going into the year-end.

The move comes a day after the Fed trimmed both the benchmark fed funds rate and the discount rate for lending to banks by a quarter point, to 4.25 and 4.75 per cent respectively.

The dollar rose to session highs at around 111.94 yen, from 111.50 previously. The euro rose 1.6 per cent against the yen to 164.86 yen.

The dollar, however, extended losses against the euro, with the single currency now trading 0.6 per cent higher at $1.4729.