Yen worries increase as dollar strengthens after Fed

The dollar hit fresh peaks on Thursday, sitting around its highest against the yen since November after a hawkish pause by the U.S. Federal Reserve. Sterling, meanwhile, sank to fresh multi-month lows in the wake of an inflation report that surprised to the downside on Wednesday, as questions ramp up about whether the Bank of England may follow its U.S. peer in holding rates on Thursday. The Fed met market expectations at its monetary policy meeting on Wednesday, holding interest rates steady at the 5.25% – 5.50% range.