US Dollar dips after Bank of Japan issues news on easing effort
October 31, 2012, 12:02 am TWN
TOKYO--The U.S. dollar eased against the yen in Asian trade on Tuesday following a much-anticipated announcement by the Bank of Japan (BOJ) that it would boost its easing effort by an extra 11 trillion yen (US$138 billion).
The U.S. dollar was at about 79.90 in Tokyo afternoon trade ahead of the BOJ policy announcement and fell to 79.50 yen after the central bank announced yet more easy money to help boost the slowing economy.
The yen also firmed slightly against the euro after the bank's announcement.
The euro bought US$1.2894 and 102.37 yen, compared with US$1.2900 and 103.18 yen before the BOJ announcement, and against US$1.2900 and 102.95 yen in U.S. trade.
With the additional cash, the bank's asset-purchase program stands at a total 91 trillion yen, up from 80 trillion yen.
HiFX Senior Trader Stuart Ive said euro-dollar trading was likely to remain mostly rangebound in the Asian session due to a lack of data.
The U.S. dollar was mixed against other Asia-Pacific currencies.
It eased to 1,091.60 South Korean won from 1,096.15 on Monday, and to 9,605 Indonesian rupiah from 9,630 rupiah.
The greenback firmed to 41.30 Philippine pesos from 41.25 pesos, to 30.74 Thai baht from 30.70 baht, to SG$1.2225 from SG$1.2209 and to 54.18 Indian rupees from 53.84 rupees.
The Australian dollar fell to US$1.0343 from US$1.0361 while China's yuan was at 12.67 yen against 12.76 yen.