TOKYO: The yen traded in a narrow range in Asia Thursday as markets keep a close eye on the Bank of Japan for any new policy measures as it wraps up its first board meeting under new leadership.
The dollar, which fell Wednesday following disappointing US jobs and service sector data, fetched 92.92 yen in Tokyo morning trade, from 92.96 yen in New York Wednesday.
The euro bought $1.2841 and 119.50 yen compared with $1.2845 and 119.43 yen.
Investors are awaiting the outcome of the first BoJ policy meeting of new governor Haruhiko Kuroda, who is under pressure not to disappoint markets after weeks of talking up his plans to beat Japan's long-running deflation.
"Today, all eyes will be on the Bank of Japan," National Australia Bank said in a note, adding that "the market has reigned in some of its euphoria regarding expected easing".
It went on to say that "Kuroda may be constrained in the amount of stimulus he can deliver, as he struggles to gain consensus with a board largely appointed by the previous government".
Last month, Kuroda replaced Masaaki Shirakawa, who had sparred with Prime Minister Shinzo Abe over policy measures since the politician took office in December demanding aggressive central bank monetary easing to beat deflation.
JP Morgan also predicted the BoJ would likely fall short of the market's high-flying expectations.
"Although ... Kuroda has stated that the bank will do whatever they can do, he has not provided any hints that the measures to be announced will be significantly bolder than market expectations," it said.
Forex markets are also watching Bank of England and European Central Bank policy meetings this week amid jitters over bailed-out Cyprus and political instability in Italy.
Comments
Comments are closed for this article.