Dollar range-bound in Asia

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Tokyo - The dollar moved in a tight range in Asian trade on Tuesday ahead of a monetary policy announcement by the Bank of Japan (BoJ) scheduled later in the day.

In Tokyo trade, the dollar fetched 103.28 yen, almost unchanged from 103.26 yen in New York on Monday afternoon.

The euro fell to 143.23 yen from 143.28 yen, while it also eased slightly to $1.3869 from $1.3875.

Junichi Ishikawa, market analyst at IG Securities in Tokyo, said the central bank would likely stand pat on policy, despite some expectations of additional easing by foreign investors.

“I expect the BoJ to save its easing card for now while it assesses the pace of US economic recovery, the situation in Ukraine and China's economy,” he told Dow Jones Newswires.

But he also said the market could turn risk averse on concern over a reduction of easing money if the BoJ stands pat, following the European Central Bank, which did the same last week.

“That could see the yen strengthen,” he added.

There is growing speculation that an April sales tax rise will force the BoJ to act later this year to counter a slowdown in consumer spending and the economy as a whole. - AFP

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