By TAKASHI MOCHIZUKI The euro rose against the dollar and yen in Asia on Thursday as some investors speculate that Chinese economic data due later in the day may beat economists' expectations and fuel risk-taking sentiment. China will release industrial output data for July at 0530 GMT. A Dow Jones poll of economists forecasts a 9.8% gain from June, when it rose 9.5%. The nation's CPI CPI.AT -8.90% data for July, released earlier in the day, turned out to be stronger than consensus views, and some currency-market investors are expecting a similar outcome in the production data. "It's likely that Chinese output data will be favorable and prompt investors to buy the euro," said Yuji Saito, director of foreign exchange at Credit Agricole ACA.FR -0.25% . As of 0450 GMT, the euro was at $1.2378 from $1.2365 late Wednesday in New York, and at Y97.17 from Y97.00. Traders say the euro remains on a long-term downward bias due to ongoing debt problems in Europe. Meanwhile, the dollar was almost unchanged at Y78.46 from Y78.44. The Bank of Japan's decision to keep its policy unchanged at a two-day meeting that ended earlier in the day was expected, and caused little reaction in Tokyo currency markets. Still, the BOJ outcome might have disappointed some overseas investors, so the dollar may fall against the yen in London or New York, Credit Agricole's Mr. Saito said. The meeting was the first for new BOJ policy board members Takahide Kiuchi and Takehiro Sato, who are seen as favoring more easing. But the two new members didn't make any proposals for new easing at the meeting and agreed to keep the bank's policy unchanged. "It's possible that overseas investors may use this as an excuse to move markets," Mr. Saito said. Still, the dollar's downside will likely be limited to Y78.00, traders said, due to investor concerns over Japanese currency-market intervention. "There are a lot of bid orders around Y78.10," one trader in Tokyo said. The Wall Street Journal Dollar Index, which tracks the U.S. dollar against a basket of currencies, was at about 71.38 from 71.46 in New York. Write to Takashi Mochizuki at takashi.mochizuki@dowjones.com

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