TOKYO: The yen was mixed in Asia Wednesday as investors await the end of a Bank of Japan (BoJ) policy meeting to find out its plans for the world's number three economy.
In morning Tokyo trade, the dollar edged down to 104.28 yen from 104.32 yen in New York Tuesday afternoon, while the euro rose to 141.50 yen from 141.46 yen.
The European single currency fetched $1.3564, against $1.3559.
Most analysts expect the bank to hold off making any adjustments to its huge asset-buying scheme until it can gauge the effect of an April sales tax rise.
The rate hike, seen as crucial to containing Japan's massive national debt, has stoked fears it could derail the country's recovery and lead to a further expansion of its monetary easing.
In focus will be the BoJ's target of 2.0 percent inflation within two years as part of a bid to reverse years of falling prices, which have weighed on growth.
Observers are increasingly sceptical about the bank's ambitious timeline and investors will be watching to see if it makes any change to that target.
The BoJ meeting comes a week before the US Federal Reserve holds its policy meeting, with investors expecting a further reduction in its own stimulus programme.
The Fed last month said it would trim its bond-buying scheme by $10 billion a month to $75 billion in January, citing a firming economy.
Sentiment got a boost after the International Monetary Fund said Tuesday that the global economic recovery is strengthening as countries move away from austerity budgets and their banking systems are fortified.
It forecast the global economy to grow 3.7 percent this year, compared with its previous estimate of 3.6 percent.
Among advanced economies, the IMF sees US growth at 2.8 percent this year, Japan at 1.7 percent and the eurozone at 1.0 percent.
The euro's modest gains came as a report Tuesday showed investment sentiment in Germany stalled unexpectedly in January after rising to a seven-year high the previous month, but it added that the recovery of Europe's top economy remains intact.
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