The Australian dollar jumped 0.7 percent to a 17-year high of $0.8433 after data showed the country's economy expanded at a 1.6 percent clip in the January-March quarter from the previous quarter, easily surpassing forecasts. Earlier the Reserve Bank of Australia kept rates on hold at 6.25 percent as expected, but the country's strong economy is seen keeping alive the possibility of higher rates if inflation reaccelerates. The Australian dollar punched to its highest versus the yen since April 1992 near 102.25 yen, while the New Zealand dollar pushed back towards a 17-year peak struck the previous session. Tomoko Fujii, senior economist and strategist at Bank of America, said the Aussie will continue to strengthen on the country's firm growth and as long as steady global markets encourage carry trades. "Interest rate differentials, the Australian economy's strength and brisk international commodity markets make the Aussie attractive," Fujii said. The yen has suffered despite two-year yields in Japan hitting 1.000 percent for the first time in 10 years on expectations of a Bank of Japan rate rise as soon as August, mainly because overseas yields have climbed more quickly. U.S. two-year yields are about 4 percentage points higher than in Japan. Two-year yields in the euro zone are some 3.45 percentage points higher, the widest spread in nearly five years.