SINGAPORE, July 27 (Reuters) - The dollar extended its gains against the yen and rose 1.6 percent on Wednesday, after the Wall Street Journal reported that Japan is considering issuing 50-year bonds as part of an economic stimulus package. dollar last stood at 106.34 yen JPY= , up about 1.6 percent on the day.
The Wall Street Journal report stirred renewed expectations for the Bank of Japan to further ease monetary policy this week, at a time when the Japanese government is crafting a fiscal spending package.