The Bank of Japan's short-term interest rate hike announcement prompted currency investors to buy the yen and sell the dollar in Tokyo on Wednesday.

The Japanese currency rose immediately after the news, hitting the 151 level. It appreciated further against the dollar to the lower 150-yen level for the first time in about four months.

This followed the BOJ governor's remarks that the central bank will continue to raise rates if the economic and price situation moves in line with its outlook.

Stock investors also reacted sharply to the BOJ's move. Tokyo's benchmark Nikkei 225 ended Wednesday at 39,101, up 1.5 percent.
Banks and other finance-related shares were bought on the rate hike. Analysts say the yen's rise against the dollar during trading hours was not as great as expected.

Investors also placed buy orders on semiconductor-industry stocks after news that Japan would be exempt from a US crackdown on chip-related exports to China.

The Nikkei 225 has been on the rise since Monday's sharp rebound, ending its eight-day losing streak.