TOKYO: The yen strengthened in Asia on Thursday after the Bank of Japan (BoJ) wrapped up its last policy meeting under governor Masaaki Shirakawa with no fresh policy measures.
The greenback changed hands at 93.83 yen in Tokyo, against 94.04 yen in New York late Wednesday, while the euro bought 121.87 yen from 122.00 yen.
The European currency also fetched $1.2988 against $1.2971, ahead of a policy meeting of the European Central Bank later in the day.
The BoJ, which left rates unchanged at zero to 0.1 percent, also offered an upbeat view on the world's third-largest economy, saying it has "stopped weakening" and was "expected to level off more or less for the time being".
The bank was widely expected to take no action as Shirakawa prepares to step down later this month, about three weeks before the end of his term, following a public sparring with the Prime Minister Shinzo Abe over policy.
Shirakawa's expected replacement, Haruhiko Kuroda, is likely to be confirmed by parliament in the coming weeks.
The 68-year-old Kuroda has long criticised the BoJ for doing too little to lift the world's third-largest economy, and is seen as likely to lead a fresh drive for more spending and aggressive monetary easing to beat deflation, putting him squarely in Abe's camp.
Easing tends to weaken the yen.
The dollar had won a measure of support after US payrolls firm ADP said the private sector added 198,000 jobs in February, well above expectations, and stoking optimism for the government's February jobs report due Friday.
Forex markets were also looking ahead to monetary policy meetings at the European Central Bank and Bank of England later in the day.
"FX markets are guarding against downward revisions to the ECB's inflation forecasts and the attendant risk of some form of additional policy easing," National Australia Bank said in a note.
There was "an evident fear" that the pound will be hit once more should the Bank of England vote in favour of additional easing measures, it added.
The pound slipped to $1.5008 in Asian trade from $1.5017 in New York on Wednesday. It had fallen in New York Wednesday to below $1.50 for the first time since July 2010.
The British unit has been under pressure after Moody's stripped the country of its coveted triple-A debt rating last month, citing weak growth prospects and a big public debt.
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