Dollar, euro hold on to gains against yen after BOJ meeting
July 16, 2014, 12:03 am TWN
TOKYO--The dollar and euro maintained recent gains against the yen on Tuesday after the Bank of Japan (BOJ) held off expanding its huge stimulus program.
After a two-day meeting the central bank said the world's number three economy was recovering despite activity taking a hit from an April sales tax hike.
The dollar fetched 101.59 yen in Tokyo, the same rate before the decision and marginally up from 101.54 yen in New York Monday afternoon. The euro bought 138.36 yen against 138.29 yen in U.S. trade.
The single currency was also at US$1.3619, unchanged from New York trade.
Investors are now keeping an eye on a news conference by BOJ Governor Haruhiko Kuroda later in the day.
Also in focus is U.S. Federal Reserve chief Janet Yellen's two-day congressional testimony that kicks off later Tuesday as well as retail sales figures for June.
“The market will be examining this report closely for signs that the U.S. consumer spending growth is back on track ... Then there'll be intense focus on Fed Chair Yellen's testimony,” National Australia Bank said in a note.
It said it expects Yellen to downplay talk of any rate rises any time in the near future.
“We'd be expecting she will refer to the fact that average earnings growth is still consistent with their inflation mandate and that labour market slack persists with broader measures of unemployment remaining above average,” it added.
The dollar was higher against other Asia-Pacific currencies.
It firmed to SG$1.2431 from SG$1.2410 on Monday, to 32.18 Thai baht from 32.14 baht, to 60.17 Indian rupees from 59.97 rupees, and to 1,026.26 South Korean won from 1,018.54 won.
The greenback rose to 43.59 Philippine pesos from 43.53 pesos and to 11,728.80 Indonesian rupiah from 11,657.50 rupiah.
The Australian dollar edged down to 93.90 U.S. cents from 93.96 cents, while the Chinese yuan fetched 16.33 yen against 16.34 yen.