TOKYO: The euro was mixed in Asia on Thursday ahead of a European Central Bank (ECB) meeting, with policymakers widely expected to stand pat on policy despite troubling eurozone economic data.
In morning Tokyo trade, the euro rose to 114.91 yen from 114.77 yen in New York late Wednesday while the single currency weakened to $1.3047 from $1.3061.
The greenback also strengthened to 88.08 yen from 87.86 yen as the Japanese currency continued its decline on the back of central bank easing speculation.
Dealers said the ECB would likely douse any hopes of its own monetary easing, although markets were keeping a close eye on comments from bank chief Mario Draghi at his first news briefing of the year for hints to future policy.
"The ECB looks set to extend the waiting game, leaving policy rates on hold today while keeping the door open to additional monetary easing," Credit Agricole said in a note.
On Wednesday, official data showed industrial powerhouse Germany recorded a slight 0.2 percent rise in November production after a weak October, but the data was a disappointing year-end showing for Europe's top economy.
"The November data has heightened speculation that the ECB could cut rates... later today," National Australia Bank said in a note but added that it did not think the bank would act.
Also Thursday, the Bank of England meets but with few expectations of policy moves while markets were also looking at Chinese data that showed the world's number-two economy recorded a 48.1 percent surge in its 2012 trade surplus to $231.1 billion.
Japan's currency has come under selling pressure since the nation's new Prime Minister Shinzo Abe vowed before his successful election last month to push the Bank of Japan for more aggressive monetary easing as part of his bid to fix the limp economy.
Abe on Wednesday reiterated his call for BoJ Governor Masaaki Shirakawa to introduce a two percent inflation target ahead of the central bank's policy board meeting later this month.
Comments
Comments are closed for this article.