In European markets Wednesday, the euro was down 0.3% against the dollar at $1.1228. The dollar was 0.2% lower against the yen at Y119.9830. The greenback had weakened against the Japanese currency in Asian trade after the BOJ left its policy intact.
The dollar was also weaker against the yen in choppy Asia trade, with some speculative players disappointed to see the Bank of Japan’s decision to keep its monetary policy intact.
The dollar’s weakness underscores increasing expectations among some short-term players who built up positions in anticipation of monetary easing by the central bank Wednesday, given Japan’s darkening economic outlook and low inflation. But the central bank’s inaction prompted some to unwind their speculative positions, putting downward pressure on the U.S. currency.
