TOKYO: The dollar inched up against the yen in Asia Thursday after tumbling in New York as the Bank of Japan kicks off a policy meeting and investors look ahead to the release of US data, but geopolitical tensions capped gains.
In midday Tokyo trading, the greenback bought 102.11 yen, up from 102.03 yen in New York although it was still down from 102.27 yen in Tokyo earlier Wednesday.
The euro strengthened to $1.3545 and 138.31 yen against $1.3532 and 138.06 yen.
Bank of Japan policymakers are widely expected to hold off further easing measures after their meeting wraps up Friday. But markets will be keen for any hints of future moves at a regular news briefing by BoJ governor Haruhiko Kuroda.
Following upbeat jobs data last week, investors are eyeing May US retail sales for the latest snapshot of the world's biggest economy, with a positive result data likely to lift the dollar.
"Healthy US data releases, could provide some relief to the negative market tone," Credit Agricole said.
However, there is some nervousness in the market after rebels seized the Iraqi city of Tikrit as a jihadist offensive sweeps closer to Baghdad, prompting the UN Security Council to convene crisis talks. The US is said to be considering air strikes on the rebels.
"So we have another source of geopolitical tension to add to Ukraine and various parts of East Asia," National Australia Bank said.
That came as the World Bank trimmed its 2014 global growth forecast to 2.8 percent from its January forecast of 3.2 percent, while the International Monetary Fund warned sky-high housing prices could foreshadow a crash.
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