TOKYO: The yen fell against the dollar and euro in Asian trade on Wednesday as risk sentiment shifted on easing worries over Europe's debt crisis, following a successful Spanish bond auction.
The dollar firmed to 81.38 yen in Tokyo from 80.87 yen in New York late Tuesday. The euro also rose to 106.72 yen from 106.16 yen while buying $1.3114 against $1.3127 in New York.
Share-price gains in the United States and Asia boosted risk appetite, prompting a sell-off in the safe-haven yen, dealers said.
There were also rising expectations that the central Bank of Japan will usher in new easing measures at its April 27 meeting, Mitsubishi UFJ Trust and Banking chief manager of currency trading Takao Yahata told Dow Jones Newswires.
Bank of Japan deputy governor Kiyohiko Nishimura said Wednesday: "The bank is committed to implementing additional easing measures if deemed necessary."
Tokyo's benchmark Nikkei 225 index was almost two percent higher in afternoon trade following rises in US and European markets.
On Tuesday, the International Monetary Fund raised its 2012 global economic growth outlook to 3.5 percent, boosting sentiment.
"Financial markets have leaned to risk-on sentiment again," Credit Suisse said, noting a smooth Spanish bond auction, improved German economic data, solid US corporate earnings and a rate cut by India's central bank.
Hopes for additional monetary easing by central banks around the world were the main driver of bullish sentiment, it said in a research note.
However, it warned it was unlikely that the US Federal Reserve and European Central Bank would move on additional easing in the immediate future.
"If macro-economic data started showing deterioration, the market mood will again turn risk-off," the note said.
The dollar fell against other Asian currencies, dropping to 1,137.20 South Korean won from 1,140.28 won on Tuesday, to 9,172.00 Indonesian rupiah from 9,187.00 rupiah, and to Sg$1.2488 from Sg$1.2520.
The greenback also fell to 42.61 Philippine pesos from 42.72 pesos and to 30.78 Thai baht from 30.85 baht, while holding steady at Tw$29.50.
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