The U.S. dollar topped the 150 yen line on Tuesday in Tokyo after the Bank of Japan decided to end its negative interest rate policy as widely expected by the market, while noting that accommodative conditions are expected to remain.

The U.S. currency, trading in the lower 149 yen range in the morning, rose to around the 150 yen line after the BOJ announcement, which marked a major shift from the central bank's powerful monetary easing policy that had been in place for years.

"The outcome was within market consensus, with the yen weakening slightly as the BOJ expressed its intention to maintain an accommodative policy," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

At 2 p.m., the dollar fetched 149.97-98 yen compared with 149.09-19 yen in New York and 149.12-14 yen in Tokyo at 5 p.m. Monday.

The euro was quoted at $1.0869-0873 and 163.05-09 yen against $1.0867-0877 and 162.08-18 yen in New York and $1.0892-0893 and 162.43-47 yen in Tokyo late Monday afternoon.

The yield on the benchmark 10-year Japanese government bond briefly fell 0.030 percentage point from Monday's close to 0.725 percent on expectations that the bank would keep an accommodative monetary stance.

In its first rate increase in 17 years, the BOJ decided to guide short-term interest rates within a range of zero and 0.1 percent, judging that its goal of attaining stable 2 percent inflation is "in sight."

The central bank also decided to scrap its yield cap program, under which long-term interest rates have been at extremely low levels, and end its purchases of assets such as exchange-traded funds.

Related coverage:

BOJ ends negative rate, shifts from powerful monetary easing