TOKYO: The dollar was firmer against other major currencies in Asian trade on Friday as investors looked to a Bank of Japan policy meeting amid speculation of further monetary easing.
The dollar firmed to 81.18 yen from 80.96 in New York late Friday.
Against the euro, the greenback was changing hands at $1.3205, up from $1.3240.
The euro firmed to 107.23 yen from 107.18 yen.
Many expect the central bank will announce later Friday further monetary easing measures, which could weaken the yen.
A positive outcome from the BoJ board meeting could include a 10 trillion yen expansion of its asset purchase programme, and the extension of government-bond purchases to bonds with longer maturities, among other measures, Masafumi Yamamoto, chief currency strategist at Barclays Capital in Tokyo said.
If all these measures are announced, the dollar could climb above 82 yen, but the pair's upside could be limited if only some are announced, he told Dow Jones Newswires.
Earlier reports have said the BoJ will forecast on Friday that prices are set to rise less than one percent next year, boosting the chances of fresh easing measures to stimulate the economy.
The central bank is likely to predict inflation will be lower than the 1.0 percent target for the fiscal year starting in April 2013 in its twice-yearly report on Friday, public broadcaster NHK and other media said.
The BoJ would discuss whether additional monetary easing was necessary, NHK said, without citing sources.
Figures released Friday showed inflation in Japan stood at 0.2 percent on-year in March, up from 0.1 percent the previous month. However, the higher cost of energy was the main factor contributing to this rise.
Comments
Comments are closed for this article.