TOKYO, Sept 18 (Reuters) - Japanese stocks snapped a three-day winning streak on Friday after the Federal Reserve kept interest rates at a record low, raising worries about the health of both the U.S. and global economies.
Investors also refrained from taking large positions ahead of long holidays next week in Japan.
The Nikkei share average dropped 2 percent to 18,070.21 pointed, ending the week down 1.1 percent.
Major Japanese exporters suffered after the dollar plummeted more than 1 percent overnight in response to the Fed's assessment of the U.S. economy.
Toyota Motor Corp and Honda Motor Co each dropped 1.4 percent while Panasonic Corp lost 2.1 percent.
Dai-ichi Life Insurance Co, which invests most of the premiums it gets from policyholders in bonds such as U.S. Treasuries, dived 6.2 percent. The Topix subindex for insurance shares fell 5 percent.
The broader Topix dropped 2 percent to close at 1,462.38, shedding 1.2 percent for the week. The JPX-Nikkei Index 400 declined 2.1 percent to 13,120.22. (Reporting by Joshua Hunt and Ayai Tomisawa; Editing by Kim Coghill)