Yen mixed amid Japan easing speculation

TOKYO: The yen was mixed against the dollar and euro in Asian trade Wednesday as investors speculated over possible monetary easing measures by the Bank of Japan (BoJ).

The dollar was at 78.21 yen in the afternoon, against 78.15 yen in New York late Tuesday. The euro bought $1.2903 and 100.92 yen against $1.2920 and 100.96 yen.

The dollar has drifted higher above the 78.00 mark despite a steadiness in US Treasury yields, noted Barclays Bank chief strategist Masafumi Yamamoto.

Continued pressure on the BoJ from new Economy Minister Seiji Maehara to do more to boost growth may have raised expectations among overseas investors for additional easing this month, he said in a note.

The Japanese central bank, which last month surprised markets with a 10 trillion yen expansion of its asset purchase programme, is to hold a two-day policy meeting from Thursday.

A Dow Jones Newswires poll tips the bank will stand pat this time but some BoJ watchers think it might act again at its next session on October 30.

Maehara, a senior ruling party lawmaker who was appointed as economy minister when Prime Minister Yoshihiko Noda reshuffled his cabinet Monday, has been advocating aggressive credit easing and more measures to guide the yen lower including a possible purchase by the BoJ of foreign bonds.

Investors were also watching developments in debt-ridden Spain.