Dollar stays below 80 yen ahead of BoJ meeting

TOKYO: The dollar traded below 80 yen in Asia on Monday ahead of a meeting of the Bank of Japan which was expected to usher in further easing measures, speculation that has been weighing on the Japanese currency.

The greenback, which shot past 80.30 yen on Friday on expectations of BoJ action, changed hands at 79.67 yen in Tokyo morning trade, against 79.62 yen in New York late Friday.

The euro, meanwhile, weakened to $1.2926 and 102.94 yen from $1.2942 and 103.00 yen in US trade on eurozone concerns, particularly the fate of Spain and Greece.

The BoJ is widely expected to take further easing steps at a one-day policy meeting on Tuesday as it looks to counter slowing in the world's third-largest economy and tackle the deflation that has plagued Japan for years.

The dollar has been gaining strength on easing speculation and upbeat US economic data.

The US economy grew a slightly better-than-expected 2.0 percent at an annualised rate in the July-September quarter, picking up from 1.3 percent in the second quarter, the Commerce Department reported last week.

"Economic fundamentals still support a further rise in the dollar," a senior dealer at a major bank in Tokyo told Dow Jones Newswires.