Yen Slumps as BOJ Keeps Policy Ultra-Loose, Dollar Set for 10th Weekly Rise

Yen Slumps as BOJ Keeps Policy Ultra-Loose, Dollar Set for 10th Weekly Rise
A picture illustration shows U.S. 100 dollar banks and Japanese 10,000 yen notes taken in Tokyo on Aug. 2, 2011. Yuriko Nakao/Reuters
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LONDON/SINGAPORE—The yen fell sharply on Friday after the Bank of Japan (BOJ) kept interest rates in negative territory days after the Federal Reserve signalled U.S. borrowing costs would stay high, piling pressure on the Japanese currency.

Meanwhile, the U.S. dollar index was on track for its 10th consecutive weekly increase in the wake of the Fed decision and as the euro fell after weak economic data from France.