Summary A tightening of monetary policy would send interest rates higher, and draw more demand for dollar.
TOKYO, April 11, 2013 (AFP) - The yen was lingering just below the 100-to-the-dollar level in Asian trade on Thursday, resisting falls that would push it into three figures for the first time in four years.
The dollar was quoted at 99.67 yen in Tokyo morning trade against 99.76 yen in New York Wednesday afternoon. The euro slipped to 130.00 yen against 130.26 yen while edging down to $1.3051 from $1.3068.
The market may need a bit more time to push the dollar up above the 100-yen mark as there are still some sell orders below that level, said a senior dealer at a major bank in Tokyo.
"London names have been selling dollars this morning... It ll be less likely to happen during Asian hours, though we may be able to test it again in London or New York trade today," he told Dow Jones Newswires.
Market players expect the dollar to hit the psychologically important 100.00-yen level soon following the Bank of Japan s sweeping monetary easing last week. The dollar last topped 100 yen in April 2009.
With the euro having already breached the 130 mark, the dollar may also gather enough momentum to hit 100 yen Thursday, said Kenichi Hirano, operating officer at Tachibana Securities.
The dollar gained slightly Wednesday after the minutes of the last Federal Reserve policy meeting showed a slight increase in board members desire to reel in the huge bond purchase programme this year.
The upside was limited in part because the minutes represented sentiment in mid-March, before dismal job creation numbers quelled rising optimism about the US economy.
A tightening of monetary policy would send interest rates higher, and draw more demand for the dollar.
"Many participants... expressed the view that continued solid improvement in the outlook for the labour market could prompt the committee to slow the pace of purchases beginning at some point over the next several meetings," the minutes said.
