TOKYO: The yen picked up on Thursday as the Bank of Japan held fire adding to its vast stimulus programme, while the euro dipped after a rally in New York.
In Tokyo afternoon trade, the dollar slipped to 118.61 yen from 118.85 yen before the BoJ decision and 119.02 in New York, while the euro was at 131.81 yen against 132.02 yen.
The single currency was also at $1.1102 against $1.1128 in New York. However, that is well up from $1.0998 in Asia earlier Wednesday.
However, the yen's gains will likely be capped as investors expect Japan's central bank will further loosen monetary policy this year, while the US Federal Reserve edges towards raising interest rates.
"The economic recovery is stalling, wages are barely rising, and inflation excluding food and energy is near zero, too," Marcel Thieliant at Capital Economics said in a commentary after the BoJ meeting.
"We therefore remain convinced that more monetary easing will be needed before too long," he added.
The dollar took a hit in New York after the data showed the US economy grew at an annualised rate of 0.2 percent in January-February, far short of the 1.0 percent projected by analysts.
Later in the day the US Federal Reserve said the slowdown was due "in part" to transitory factors and expansion should continue at a "moderate pace".
That suggested the Fed still expects to begin a slow series of rate rises in the coming months, though not likely in June as many analysts had been expecting until recently.
National Australia Bank said the Fed was "totally data dependent in considering when next to change policy", adding that September remains the next most likely time for the bank to lift rates.
The euro jumped in New York after the US growth data, while it has also been supported by hopes Greece and its creditors can hammer out a bailout overhaul as Athens prepares to present a series of reform measures to unblock much-needed cash.
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