Japan’s Nikkei stock average reached a record high on Thursday, while the yen recovered from a four-month low after the US Federal Reserve maintained its easing policy despite strong inflation readings.

The Bank of Japan (BOJ) raised interest rates for the first time since 2007 and capping eight years of massive stimulus measures.

The BOJ and Fed policy announcements have given investors the green light to buy stocks again, citing better corporate governance, the end of deflation, and concerns about China.

The BOJ sees opportunity for another raise this year, with market participants considering July or October as possible dates. However, it is too early to say there’s a risk of a July hike, as it would necessitate continued currency weakness despite Fed rate cuts and potential Japanese forex market intervention.

The Japanese Finance Minister warned that the government was closely monitoring currency movements with “a high sense of urgency” but made no mention of currency intervention.