The dollar edged down against the yen in Asia on Wednesday as investors wait for the outcome of a closely watched policy meeting of the Bank of Japan.
The greenback was changing hands at 78.65 yen in Tokyo morning trade, down from 78.80 yen in New York late Tuesday. The euro bought $1.3037 and 102.52 yen, compared with $1.3044 and 102.79 yen in US trade. The Bank of Japan (BoJ) is to conclude a two-day meeting on Wednesday, with many economists hoping it will unveil new easing measures after the US and European central banks announced bond-purchase programmes. A senior dealer at a Japanese bank said the dollar was down on selling from Japanese exporters. There were also some market participants who were selling dollars just ahead of the BoJ meeting outcome as they think it would likely make no move, he told Dow Jones Newswires. The dollar’s upside would be limited around the lower half of the 79-yen range unless the BoJ is aggressive, said Osamu Takashima, chief FX strategist at Citibank Japan. Market participants have to a certain extent factored in an easing step by the BoJ, but could still be surprised if it announces a 10-trillion-yen increase in the asset purchase programme, he said in a note.
