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Yen falls after fresh BoJ monetary easing

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(Globalpost/GlobalPost)

The yen fell dramatically against the dollar and the euro in Asia Thursday after the Bank of Japan (BoJ) unveiled fresh easing measures in its first board meeting under new leadership.

The dollar, which fell Wednesday following disappointing US jobs and service sector data, fetched 94.53 yen in Tokyo afternoon trade, from 92.96 yen in New York Wednesday and from 92.87 yen shortly before the BoJ decision was announced.

The euro bought $1.2832 and 121.32 yen compared with $1.2845 and 119.43 yen in New York and $1.2846 and 119.34 yen earlier in Tokyo before the central bank announcement.

After a two-day meeting the BoJ unveiled fresh quantitative easing measures Thursday under new governor Haruhiko Kuroda who has vowed to turn around the stuttering economy.

It said it would embark on an aggressive spending programme, boosting asset purchases including Japanese government bonds, while pledging to meet a two percent inflation target within two years.

"This is more than expected in quantity, amount, in every sense," Tsunemasa Tsukada, chief manager of forex and financial products trading at Mitsubishi UFJ Trust and Banking Corporation, told Dow Jones Newswires.

Last month, Kuroda replaced Masaaki Shirakawa, who had sparred with Prime Minister Shinzo Abe over policy measures since the politician took office in December demanding aggressive central bank monetary easing to beat deflation.

Forex markets are also watching Bank of England and European Central Bank policy meetings this week amid jitters over bailed-out Cyprus and political instability in Italy.

The dollar was mostly higher against other Asia-Pacific currencies Thursday, firming to 1,123.65 South Korean won from 1,118.73 won a day earlier, to 54.61 Indian rupees from 54.36 rupees and to 41.06 Philippine pesos from 40.91 pesos.

It also advanced to Sg$1.2396 from Sg$1.2393, and to 9,760 Indonesian rupiah from 9,742 rupiah.

The greenback fell to 29.35 Thai baht from 29.41 baht, while it was flat at Tw$29.88.

The Australian dollar fell to $1.0443 from $1.0451while the Chinese yuan fetched 15.26 yen against 15.05.

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http://www.globalpost.com/dispatch/news/afp/130404/yen-falls-after-fresh-boj-monetary-easing