Dollar posts modest gains
Afp, London
The dollar moved higher against the euro and the yen in Wednesday trade, while dealers dismissed speculation that Japan could end its stimulative monetary policy. The euro dipped to 1.1972 dollars in early European trading from 1.1987 dollars in New York late on Tuesday. The dollar rose to 118.05 yen from 117.78 yen on Tuesday. The greenback won back ground against the yen on Wednesday, following losses the previous day made on talk that Japan's central bank may soon take steps that could boost the Japanese currency. "Nervousness that the Bank of Japan may announce early action to curtail the extent of quantitative easing" had pushed the yen higher on Tuesday, said HBOS currency analyst Steve Pearson. The yen had been buoyed by mounting expectations that the BoJ might soon end its policy of "quantitative easing", which it says is a necessary step toward ensuring stable long-term bond yields. Japan's central bank opened a two-day meeting Wednesday amid mounting signs it believes its five-year policy of flooding the system with cash and keeping interest rates super-low has run its course.
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