TOKYO: The dollar was steady against other major currencies in Asian trade on Thursday as investors looked to a Bank of Japan policy meeting amid speculation of further monetary easing.
The euro bought $1.3217 and 107.49 yen in Tokyo morning trade, almost flat with New York trade late Wednesday.
The dollar was also little changed at 81.33 yen.
The greenback was likely to move within the 81.00-81.60 yen range on Thursday as the market awaited the outcome of Friday's policy meeting by Japan's central bank, said a senior trader at a major bank in Japan.
Many expect the central bank to announce further monetary easing measures, which could weaken the yen.
"The dollar/yen will have a hard time moving before the event," the trader told Dow Jones Newswires.
Federal Reserve chairman Ben Bernanke held out the possibility of further easing after a policy meeting Wednesday, lifting the euro against the dollar.
But the US central bank kept policy unchanged while slightly boosting its growth forecast for the world's biggest economy.
Currency markets barely reacted Thursday after a Tokyo court acquitted Ichiro Ozawa, one of the most powerful figures in Japanese politics, over allegations he misused political funds.
"The verdict was widely expected and came as no surprise," said Mizuho Securities' chief market economist Yasunari Ueno.
Ozawa, a staunch opponent of a plan to double Japan's consumption tax, is seen as a potential obstacle to Prime Minister Yoshihiko Noda's fiscal reform drive.
"Ozawa's opposition to tax hikes is well known. More important is whether the ruling party is able to cobble together support from the opposition to push through the tax hike bill," Ueno said.
Comments
Comments are closed for this article.