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Dollar slips in Asia after Bank of Japan stays pat

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(Globalpost/GlobalPost)

The dollar sank against the yen in Asia on Friday after the Bank of Japan held off new easing measures at its first policy meeting since this month's huge stimulus.

The dollar bought 98.73 yen in afternoon trade, from 99.29 yen in New York late Thursday, while the euro firmed to $1.3042 from $1.3009 but fell to 128.82 yen from 129.22 yen.

Wrapping up its latest meeting, the Bank of Japan said its policy board had voted unanimously against any new policy measures after earlier this month saying it would unleash a flood of easy money to stoke the limp economy.

A senior dealer at a major British bank said the dollar also suffered as exporters sold the unit ahead of a long weekend, adding that there was a risk it could fall further if US growth data comes in below expectations later in the day.

Investors were unmoved by official data showing Japan's consumer prices fell 0.5 percent year-on-year in March, which underlined the tough task ahead for the bank and the new government of Shinzo Abe.

The pound held on to gains it made Thursday against the dollar after data showed the British economy expanded 0.3 percent in the first quarter of 2013, beating expectations it would fall into recession for a third time since the financial crisis.

Sterling was at $1.5458 on Friday against $1.5430 in New York on Thursday and well up from the $1.5264 ahead of the growth news.

"The better than expected UK GDP figures, showing that a dreaded triple-dip recession was avoided... has given sterling a big boost," National Australia Bank said in a note.

The dollar was mixed against other Asia-Pacific currencies.

It firmed to 54.19 Indian rupees from 54.15 rupees on Thursday, to 9,722 Indonesian rupiah from 9,714 rupiah and to 29.32 Thai baht from 28.93.

It slipped to Sg$1.2369 from Sg$1.2390, to 41.20 Philippine pesos from 41.30 pesos, to Tw$29.60 from Tw$29.69 and to 1,109.25 South Korean won from 1,118.74 won.

The Australian dollar rose to $1.0312 from $1.0230 and the Chinese yuan fetched 16.04 yen against 16.05 yen.

-- Dow Jones Newswires contributed to this story --

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http://www.globalpost.com/dispatch/news/afp/130426/dollar-slips-asia-after-bank-japan-stays-pat