TOKYO: The yen strengthened on the dollar in Asian trade on Thursday after the Bank of Japan launched fresh monetary easing measures that were largely expected by the market.
The greenback changed hands at 84.06 yen in Tokyo afternoon trade, from 84.19 yen before the BoJ announcement and 84.39 yen in New York late Wednesday.
The euro fetched 111.00 yen, down from 111.24 yen earlier Thursday and 111.59 yen in US trade, while the single currency bought $1.3208 from $1.3226.
Japan's central bank launched fresh easing Thursday after wrapping up a two-day policy meeting as it faced heavy pressure from the country's incoming government for more stimulus to spur the world's third-largest economy.
The BoJ's move to expand an asset-buying programme -- its main policy tool -- by 10 trillion yen ($119 billion) to 101 trillion yen came days after Japan's conservatives won national elections promising to boost spending and pressure the central bank for aggressive policy action.
However, the bank said its easing was due to a deteriorating global economy and made no direct mention of a two-percent inflation target demanded by incoming Prime Minister Shinzo Abe, which is designed to drag Japan out of the deflation that has haunted its economy for years.
The bank did say it would review its inflation goals and some traders still saw a chance it will fall into line with the new government's views, Tsunemasa Tsukada, chief manager of forex and financial products trading at Mitsubishi UFJ Trust and Banking, told Dow Jones Newswires.
The yen tumbled to multi-month lows after Abe's party swept to victory in national elections Sunday.
The euro, meanwhile, won a measure of support from a closely watched German report that showed business confidence climbing further in December, while the dollar faced pressure after weaker-than-expected US housing data.
The greenback is also coming under pressure owing to the lack of movement in US fiscal cliff talks.
The dollar was mixed against other Asia-Pacific currencies.
It strengthened to 1,073.60 South Korean won from 1,072.30 won on Wednesday, to 30.63 Thai baht from 30.60 baht, to 9,744 Indonesian rupiah from 9,719 rupiah, and to Sg$1.2200 from Sg$1.2191.
The dollar eased to 41.02 Philippine pesos from 41.06 pesos and to 54.78 Indian rupees from 54.80 rupees while it was flat at Tw$29.04.
The Australian dollar was lower at US$1.0481 from US$1.0515 while China's yuan bought 13.48 yen from 13.50 yen.
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