The greenback slipped on Tuesday while the yen surged post unexpected announcement from BOJ that took the markets by surprise regarding the monetary policy alterations.

The dollar index which traces the U.S. dollar versus its six major pairs dropped 0.5% at 103.868.

BOJ broadened the vary of the yield shifts for the governmental bonds to be within -0.5% to 0.5% instead of -0.25% to 0.25.

USD/JPY dipped by 3.3% at 132.40, it touched the lowest level in four months.

BOJ was pushed to interfere to back up the Japanese yen last October post a massive slip witnessed during the year, triggered mostly by the broadened difference between the Japanese and the U.S. interest rates.

EUR/USD climbed by 0.1% at 1.0612, as euro is still stuck in the aggressive action that the ECB took last week.

For two consecutive months, the German PPI slumped in November, which gave clues that inflation may shrink.

GBP/USD steadied at 1.2146, as the country is encountering major oppositions from workers as they are requesting higher wages to be able to cope with the inflation that touched the highest level in 40 years.