NEW YORK: The euro rallied over 4 percent versus the yen and leapt to a more than one-week high versus the dollar on Thursday as central bank policy had investors favoring the single currency.

The Bank of Japan, in a move much bolder than market expectations, pledged to inject about $1.4 trillion into the economy in less than two years.

European Central Bank President Mario Draghi, meanwhile, said the bank stood ready to act if growth continues to languish.

The euro rose as high as 124.40 yen and last traded at 124.38, up 4.1 percent on the day.

The euro reached a high of $1.2940, its highest since March 25. It last traded at $1.2934, up 0.7 percent on the day, according to Reuters data.

<Center><b><i>Copyright Reuters, 2013</b></i><br></center>