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Dollar slips in Asia ahead of Bank of Japan decision

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(Globalpost/GlobalPost)

The dollar sank against the yen in Asia on Friday ahead of a Bank of Japan meeting, with dealers betting against any more policy moves after this month's huge stimulus.

The dollar bought 98.87 yen in midday trade, from 99.29 yen in New York late Thursday, while the euro firmed to $1.3036 from $1.3009 but fell to 128.90 yen from 129.22 yen.

A senior dealer at a major British bank said the dollar 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.

The Bank of Japan's policy meeting is the first since it surprised markets with a vast easing programme at the start of the month as it aims to combat deflation and drag the economy out of a rut.

But National Australia Bank said in a note it was "doubtful that and further policy measures will be announced so soon".

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

The pound held onto 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 that it would fall into recession for a third time since the financial crisis.

Sterling was at $1.5451 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," the Australian bank said.

-- Dow Jones Newswires contributed to this story --

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http://www.globalpost.com/dispatch/news/afp/130426/dollar-slips-asia-ahead-bank-japan-decision