The Japanese Yen hovered close to the lowest level in four months versus the greenback and 16-year plunge versus the euro, traders predicted that even after the central bank discontinues its negative interest rate strategy, Japan's monetary policies will be accommodating.

The dollar index that gauges the greenback versus its major pairs edged up by 0.039.
Although the Bank of Japan announced the nation's first rate increase in 17 years on Tuesday, the U.S.-Japanese rate divergence is projected to continue significant, pushing the yen higher. The central bank stated that it expects to maintain accommodative circumstances for the time being.

The yen experienced on Wednesday a steep plunge to four-month low of 151.58 per dollar, it was last down by 0.47% at 151.56, seeing the multi-decade low of 151.94 in the distance and the possibility of Japanese government intervention reappearing.

The yen fell sharply, plunging to its lowest level against the euro of 164.66, its lowest level since 2008, and to its lowest level against the sterling of 192.75, its lowest level since 2015. Wednesday is a holiday in Japan, thus the markets are closed.