Dollar under pressure in Asia following BoJ meeting

TOKYO: The dollar was under pressure against the yen in Asia on Wednesday morning after the Bank of Japan (BoJ) held off launching fresh easing measures following a closely-watched policy meeting.

The greenback fetched 96.55 yen in Tokyo morning trade, after it sank to 96.01 yen in New York on the back of the BoJ decision, but it was still well down from the 98 yen level on Tuesday in Tokyo.

Easing measures tend to weaken the yen and markets were taken by surprise after Japanese policymakers opted to stand pat after announcing an easing programme in April that includes a huge asset-buying plan and a doubling of the country's money supply in a bid to stoke growth.

The BoJ on Tuesday said the world's third-largest economy was "picking up".

"The Bank of Japan's policy board was content simply to upgrade its economic assessment," said London-based Capital Economics.

"This disappointed those hoping for further monetary easing in response to the recent volatility in financial markets."

Worries about turmoil in global markets and a winding down of central bank policy measures pushed traders toward the safe-haven yen, dealers said, as Tokyo's Nikkei 225 index sank 1.84 percent by the lunch break following a tumble on Wall Street.