News Column

Dollar falls to lower 102 yen zone before BOJ decision-making

April 29, 2014

The U.S. dollar fell to the lower 102 yen zone Wednesday morning in Tokyo on position adjustments ahead of a decision at the Bank of Japan's policy meeting later in the day.

At noon, the dollar fetched 102.33-34 yen compared with 102.59-69 yen in New York at 5 p.m. Tuesday. The Tokyo market was closed Tuesday for a national holiday.

The euro was quoted at $1.3805-3809 and 141.27-30 yen against $1.3807-3817 and 141.69-79 yen in New York late Tuesday afternoon.

The dollar weakened somewhat in Tokyo morning trading, after its rise to the upper 102 yen range in overseas markets the previous day due to eased tensions in Ukraine, dealers said.

The market viewed the strengthened sanctions on Russia by the United States and other countries as not so strict, prompting dollar buying on a moderate risk-on mood, said Toru Moritani, chief market economist at Sumitomo Mitsui Banking Corp.

But in Tokyo, Japanese exporters also sold the U.S. currency, contributing to its decline, dealers said.

"Market participants are awaiting various pieces of economic news," such as the outcomes of the policy meetings of the BOJ and of the U.S. Federal Reserve, Moritani said.

But news out of the BOJ is unlikely to create a major trend shift as it is expected to contain nothing new, he added.

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Source: Japan Economic Newswire

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