Yen hit near three years low

LONDON: The yen fell close to a three-year low on Wednesday on expectations that a new Bank of Japan governor could ease policy, while the euro was steady and European shares edged up ahead of a central bank meeting.

BOJ Governor Masaaki Shirakawa has said he will step down on March 19, opening the way for a successor supporting the kind of expansionary policies the government favours.

The dollar touched 94.075 yen to its highest since May 2010 before profit taking saw it drop back to 93.76 yen, while the euro also rose as high as 127.71 yen, its strongest since April 2010, before it also eased.

Against the dollar, the euro dipped to $1.3546 but was within this week's range of $1.3450 - $1.3710.

New Japanese Prime Minister Shinzo Abe's support for aggressive easing does not seem to caused an outcry from other countries although there have been sporadic complaints from Germany and South Korea.

This makes yen selling comfortable, said Minori Uchida, chief currency strategist at the Bank of Tokyo-Mitsubishi UFJ.