The yen fell to its lowest point in several years against other major currencies on Thursday after a Bank of Japan vote to leave the 0.25 per cent interest rate unchanged.

In foreign exchange trading on Thursday, the dollar reached ¥121.58 from ¥120.56 on Wednesday, its highest since 2003 and the euro rose from ¥156.05 to ¥157.11.

"For the time being the yen remains the world's favourite whipping boy," Boris Schlossberg of currency firm FACT said in a note to clients.

"Market sentiment will not begin to warm towards the currency until Japanese economic data begins to produce better results."

In Japan, the central bank voted by a margin of two to one to leave ultra-low 0.25 per cent borrowing costs unchanged with the governor committing only to "gradual" change.

Toshihiko Fukui added that he remained unconvinced that weak consumer spending was on the path to recovery and that income growth remained low.
 
The dollar was also bolstered by strong economic results, indicating that the Federal Reserve will not be in any position to cut interest rates in the short to medium term.