TOKYO: The yen was mixed against the dollar and euro in Asian trade Wednesday as investors speculated over possible monetary easing measures by the Bank of Japan (BoJ).
The dollar was at 78.18 yen in Tokyo morning trade against 78.15 yen in New York late Tuesday. The euro bought $1.2912 and 100.91 yen against $1.2920 and 100.96 yen in US trade.
The dollar has drifted higher above the 78.00 mark despite a steadiness in US Treasury yields, noted Barclays Bank chief strategist Masafumi Yamamoto.
Continued pressure on the BoJ from new Economy Minister Seiji Maehara to do more may have raised expectations of overseas investors for additional easing this month, he said in a note.
The Japanese central bank, which last month surprised markets with a 10 trillion yen ($128 billion) expansion of its asset purchase programme, is to hold a two-day policy meeting to Friday.
A Dow Jones poll tips the bank will stand pat at the upcoming meeting but some BoJ watchers think it might act again at its next session on October 30.
Maehara, a senior ruling party lawmaker who was appointed as economy minister when Prime Minister Yoshihiko Noda reshuffled his cabinet Monday, has been advocating aggressive credit easing and more measures to guide the yen lower including a possible purchase by the BoJ of foreign bonds.
Investors were also watching development in debt-ridden Spain.
Spanish Prime Minister Mariano Rajoy denied Tuesday the country was planning an "imminent" demand for a sovereign bailout from the eurozone to end its financial crisis.
Market analysts said Spain might call for help within days to stabilise its public finances, but European officials cast doubt on that Tuesday, saying that key players were still far from agreement.
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