The Fed's 75 basis point reduction of its benchmark overnight lending rate to 3.5 percent on Tuesday did little to calm investors' fears of a U.S. recession and its impact on the global economy, analysts said.
Moves in stock markets are regarded as a barometer of investors' appetite for risky carry trades, which involve borrowing in the low-yielding yen to buy higher-yielding currencies and assets.
European stocks fell sharply on concerns over bank writedowns and earnings downgrades, while U.S. stock index futures pointed to another lower open on Wall Street.
The yen rose to 153.01 per euro at 8:37 a.m. in New York, from 155.73 yesterday, and increased to 105.12 to the dollar, from 106.44. T