TOKYO: The yen rose in Asia Tuesday as the head of the Bank of Japan quashed hopes for an imminent expansion to its stimulus programme, and said the economy would not be severely hurt by a recent sales tax rise.
The dollar slipped to 102.56 yen in late Tokyo afternoon trade from 102.90 yen before the BoJ governor's comments and 103.09 yen in New York Monday.
The euro also weakened to 141.22 yen from 141.65 yen in US trade., while it rose to $1.3769, from $1.3740.
The dollar has been under pressure after lacklustre US jobs data last week cut expectations of tighter monetary policy from the Federal Reserve.
On Tuesday, BoJ chief Haruhiko Kuroda said the world's number-three economy was pushing ahead despite fears the tax rise introduced on April 1 will dampen consumer spending and derail a budding recovery.
The tax is seen as crucial to shrinking Japan's mountainous debt burden but it has fuelled speculation the BoJ will have to add to its stimulus sooner than later.
The last time Japan introduced in a higher sales levy, in 1997, it was followed by years of deflation and tepid economic growth that defined the country's protracted slump.
"The sales tax hike is expected to shake growth temporarily, but the bank believes the positive cycle in the Japanese economy will not be stopped and the economy will continue to recover moderately," Kuroda told reporters in Tokyo.
"I am not considering taking additional easing measures at this point, because the economy is steadfastly moving towards reaching the stable 2.0 percent inflation goal and that I don't think there is a need for additional easing measures."
Kuroda repeated his view that the BoJ would not hesitate to ease monetary policy further to reach a 2.0 percent inflation target by next year, a goal seen as key to reversing years of deflation.
The BoJ's stimulus was introduced in April last year as part of Prime Minister Shinzo Abe's policy blitz aimed at kickstarting the economy.
The dollar was mixed against other Asia-Pacific currencies.
It weakened to Sg$1.2583 from Sg$1.2600 on Monday, to 1,052.93 South Korean won from 1,054.30 won and to 44.87 Philippine pesos from 44.89 pesos.
It also declined to 32.41 Thai baht from 32.47 baht, while rising to 11,305 Indonesian rupiah from 11,285 rupiah and to 60.12 Indian rupees from 60.06 rupees.
The Australian dollar inched up to 92.89 US cents from 92.77 cents and the Chinese yuan was unchanged at 16.58 yen.
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