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Dollar, euro hold gains against yen after BoJ meeting

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(GlobalPost/GlobalPost)

The dollar and euro maintained recent gains against the yen on Tuesday after the Bank of Japan held off expanding its huge stimulus programme.

After a two-day meeting the central bank said the world's number three economy was recovering despite activity taking a hit from an April sales tax hike.

The dollar fetched 101.61 yen in Tokyo, up marginally from 101.59 yen before the decision and 101.54 yen in New York Monday afternoon. The euro bought 138.31 yen against 138.29 yen in US trade.

The single currency was also at $1.3616 compared with $1.3619.

Investors are now keeping an eye on a news conference by BoJ governor Haruhiko Kuroda later in the day.

Also in focus is US Federal Reserve chief Janet Yellen's two-day congressional testimony that kicks off later Tuesday as well as retail sales figures for June.

"The market will be examining this report closely for signs that the US consumer spending growth is back on track... Then there'll be intense focus on Fed Chair Yellen's testimony," National Australia Bank said in a note.

It said it expects Yellen to downplay talk of any rate rises any time in the near future.

"We'd be expecting she will refer to the fact that average earnings growth is still consistent with their inflation mandate and that labour market slack persists with broader measures of unemployment remaining above average," it added.

mis/dan

http://www.globalpost.com/dispatch/news/afp/140715/dollar-euro-hold-gains-against-yen-after-boj-meeting