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Euro slips, yen mixed after Kuroda picked for BoJ

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(Globalpost/GlobalPost)

The dollar gained on the euro Thursday despite a less-than-expected upward revision to US fourth-quarter economic growth and the expected onset of the steep "sequester" US government spending cuts on Friday.

The yen, meanwhile, was little-changed after Japan's Prime Minister Shinzo Abe, as expected, nominated Haruhiko Kuroda to lead the Bank of Japan.

Kuroda, the head of the Asian Development Bank, was expected to further Abe's effort to stir up growth with more easy-money stimulus and a lower yen, after Kuroda's predecessor resisted what he saw as excessive monetary easing.

At 2200 GMT the euro was at $1.3062, compared with $1.3136 late Wednesday.

The euro fell to 120.95 yen from 121.07 yen, while the dollar rose to 92.58 yen from 92.16 yen.

Kathy Lien of BK Asset Management said that Kuroda, who still faces confirmation hearings in the Japanese legislature, had yet to speak out on policy.

But comments from other BoJ and government officials confirm "that the central bank will consider extra easing if necessary," she said.

David Song of DailyFX expects more downward pressure on the yen.

"The bearish sentiment surrounding the low-yielding currency should gather pace throughout 2013 as the central bank continues to embark on its easing cycle," he said.

"Indeed, there's growing speculation that the new central bank head will implement additional non-standard measures to achieve the two percent target for inflation."

The British pound continued to trade in its new low range, rising slightly to $1.5168 from $1.5153 late Wednesday.

The dollar gained on the Swiss franc, buying 0.9362 francs compared with 0.9297 francs a day earlier.

pmh/vs

http://www.globalpost.com/dispatch/news/afp/130228/euro-slips-yen-mixed-after-kuroda-picked-boj