Yen rises after Bank of Japan avoids more easing

The Japanese yen Tuesday advanced against the dollar and the euro after the Bank of Japan decided not to undertake fresh easing measures.

At 2100 GMT, the dollar bought 102.94 yen, down from 103.26 Monday.

The euro traded at 142.73 yen compared with 143.28.

The euro slipped to $1.3863 from $1.3875.

BOJ officials said the economy was picking up and that the bank's targets for inflation looked achievable, despite slowing growth in the last quarter of 2013.

"Japan's economy has continued to recover moderately," the bank said in a statement after a two-day policy meeting.

Analysts had widely expected the bank to stand pat Tuesday as its easing program ripples through the economy, but were watching for signs from BOJ governor Haruhiko Kuroda of future policy moves.

Nevertheless, some analysts said further easing actions could be announced at future meetings in light of a sales tax increase that will take effect in April, potentially dampening consumer spending.

"Only time will tell whether the central bank's optimism is warranted because all signs point to consumer confidence weakening," said BK Asset Management managing director Kathy Lien.

"The BOJ could be looking to engineer a stronger recovery by boosting stimulus shortly after the tax is increased and not before."

Among other currencies, the British pound fell to $1.6619 from $1.6642 Monday.

The dollar bought 0.8776 Swiss franc, down slightly from 0.8777.