Foreign exchange in Europe: the yen plummeted to a 20-year low, and non-U.S. currencies generally fell to a five-year high against the U.S. dollar

Yingwei financial investment Com - in European trading on Thursday, the US dollar soared. As the Bank of Japan maintained its ultra loose monetary policy, the US dollar broke through the key psychological level against the yen.

As of 17:36 Beijing time (05:36 a.m. EDT), the US dollar index futures, which measures the trend of the US dollar against six trade weighted major currencies, rose 0.37% to 103.343, rising to 103.710 at one point in the session, a five-year high.

The dollar / yen surged 1.6% to 130.48, breaking the important psychological threshold of 130. It rose to 131.01 during the session, reaching a new high since 2002.

Previously, the Bank of Japan expanded the scale of bond purchases and proposed unlimited purchases of 10-year Japanese government bonds to curb yields.

The Bank of Japan also stabilized the interest rate at -0.10%, indicating that it will not tighten monetary policy while continuing to support the Japanese economy.

Its approach is in sharp contrast to that of the Federal Reserve, which has begun to tighten its policy, and there is a general epidemic in the outside world. The Federal Reserve will raise interest rates by at least 50 basis points next week. It was previously speculated that the Bank of Japan may take action against the depreciation of the yen, but the bank is still strengthening its low-yield policy.

Ing analysts said in a report: "we still strongly believe that foreign exchange intervention is not a simple matter and needs to be coordinated with other G10 countries, especially with the Federal Reserve / US Treasury.

In addition, the Federal Reserve will hold a two-day policy meeting next Tuesday, but later today, the United States will release the first quarter GDP data, and market sentiment may also be affected.

Analysts predict that the U.S. GDP will grow by 1.1% in the first quarter, slower than the growth rate of 6.9% in the previous quarter. However, given that the U.S. trade deficit hit a record high, suggesting that net exports are very weak, there is a risk that the data is lower than expected.

In other currencies, the euro / US dollar fell 0.19% to 1.0535, the lowest level in five years. So far this month, it has fallen by about 5%, the worst single month performance since the beginning of 2015.

Earlier, Russia decided to stop supplying natural gas to Poland and Bulgaria from Wednesday because Poland and Bulgaria refused to pay in rubles,

This has exacerbated market concerns about European energy security and may lead to the European Central Bank being more reluctant to tighten monetary policy. Given that the tightening cycle of the Federal Reserve is still long, yes, the euro is more vulnerable.

Similarly, GBP / USD fell 0.16% to 1.2528. The Bank of England will also hold a monetary policy meeting next week, but due to the weak UK retail sales data, the market expects the Bank of England to suspend the tightening cycle.

The onshore RMB fell 0.75% against the US dollar to 6.6100; The offshore RMB fell 0.82% to 6.6386 against the US dollar. However, aud / USD rose 0.15% to 0.7136.