TOKYO , Dec. 19 -- ( Kyodo ) _ The U.S. dollar hit its highest mark in five years and two months in the lower 104 yen zone Thursday morning in Tokyo , as the U.S. central bank's policy announcement to reduce its quantitative easing was taken to signal the U.S. economy is recovering. At noon, the dollar fetched 103.97-99 yen compared with 104.23-33 yen in New York and 102.99-103.00 yen in Tokyo at 5 p.m. Wednesday . The euro was quoted at $1.3651-3655 and 141.95-96 yen against $1.3678-3688 and 142.79-89 yen in New York and $1.3770-3772 and 141.82-86 yen in Tokyo late Wednesday afternoon. The dollar touched its highest level since October 2008 in the lower 104 yen zone in early Tokyo trading, after sharply advancing in New York overnight to 104.36 yen at one point, buoyed by the Federal Reserve's decision, dealers said. But it eased somewhat later in the morning for position adjustment following its sharp rise, the dealers said. At its two-day policy-setting meeting through Wednesday, the Fed decided to trim its easing program from January, shaving $10 billion off the $85 billion asset purchase each month. The bank also unveiled a plan to keep its effectively zero interest rate policy for a while. "The decision, supported by a series of favorable economic indexes and other reasons, showed that the U.S. economy is recovering, as tapering (the stimulus) could not take place without it," said Yuzo Sakai , manager of foreign exchange business promotion at Tokyo Forex & Ueda Harlow . "It swept away growing uncertainty over the outlook for U.S. fiscal policy, leading to a risk-taking mood and yen-selling, as it was difficult for market players to move aggressively before the announcement," Sakai added. In New York overnight, the euro also climbed to its highest level since October 2008 , hitting 142.90 yen at one point.
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