Yen weakens in Asia

TOKYO: The yen weakened in Asia on Tuesday with a Bank of Japan (BoJ) two-day meeting in focus as investors wait to see if policymakers unveil fresh measures as part of its stimulus programme.

In Tokyo morning trade, the dollar rose to 104.58 yen, from 104.10 yen in London late Monday. US markets were closed Monday for a public holiday. The euro also firmed to 141.69 yen from 141.19 yen, while the single currency weakened to to $1.3548 from $1.3563 ahead of a German investor sentiment survey later in the day.

Investors are waiting to see if the BoJ adds to its vast asset-buying scheme launched in April and which is a cornerstone of Prime Minister Shinzo Abe´s campaign to kickstart the world´s third-largest economy.

However, most analysts expect the bank to hold steady on new measures until it can gauge the effect of an April sales tax rise. The rate hike, seen as crucial to containing Japan´s massive national debt, has stoked fears it could derail the country´s recovery and lead to a further expansion of its monetary easing.

The meeting "is unlikely to result in any significant changes to the asset purchase programme", Capital Economics said in a report.

"We continue to favour October for the timing of any announcement of additional easing (rather than April as many still expect). Instead, the main business next week will be to update economic forecasts and review progress on inflation."