Tokyo - The yen climbed against the dollar after Japan's central bank on Tuesday held fire on unleashing more monetary stimulus to boost growth in the world's third-largest economy.
The dollar bought 120.08 yen from 120.18 yen on Monday in New York, after touching as high as 120.65 yen ahead of the Bank of Japan's decision.
The greenback slightly rose to $1.1319 from $1.1317 in US trade, while the euro was at 135.95 yen compared with 136.01 yen.
The yen had fallen ahead of the announcement after a raft of weak domestic economic data and concerns about global growth had fuelled speculation the BoJ could expand its already unprecedented monetary easing programme.
Still, most investors had expected the central bank to stay pat as uncertainty over whether the US Federal Reserve will raise interest hikes for the first time in almost a decade this week has clouded the outlook.
While a US rate rise is expected by the year's end, the global ructions unleashed by China's devaluation last month have complicated bank policymakers' decision.
“The yen was under selling pressure ahead of the BoJ meeting partially due to speculation that the BoJ could take fresh measures,” said Yosuke Hosokawa, head of FX sales team at Sumitomo Mitsui Trust Bank.
“But it rose back again as there was no change in its decision,” Hosokawa told AFP, adding: “Anyway, the market focus stays at this week's FOMC.”
Dealers also moved into the Australian dollar and emerging market currencies, with the South Korean won, the Indian rupee and the Singapore dollar all edging up against the greenback.
The US unit also softened against the Taiwan dollar and Malaysian ringgit.
While Sydney stocks retreated, the “Aussie” dollar was given a boost by news that the popular Malcolm Turnbull would replace Tony Abbott as Australian prime minister after a Liberal Party coup on Monday.
The unit bought 71.37 US cents, up from 71.16 cents on Monday and much stronger than the six-year lows below 69.00 cents touched earlier this month.
The Chinese yuan fetched 18.08 yen against 18.88 yen on Monday in Tokyo.
AFP