Summary The dollar fetched 103.25 yen in Asia, before the Fed announcement.
TOKYO (AFP) - The dollar eased against the yen in Asian trade Thursday after the US central bank said it would continue scaling back its bond-buying programme, piling yet more pressure on emerging markets.
In morning Tokyo trade, the greenback fell to 102.23 yen, down from 102.25 yen in New York Wednesday afternoon.
The dollar fetched 103.25 yen in Asia on Wednesday, before the Fed announcement.
The move sent Tokyo stocks tumbling more than three percent Thursday.
The euro also edged down to 139.56 yen from 139.71 yen in US trade while it weakened to $1.3651 against $1.3662.
"The Fed s tapering programme implies higher US interest rates, a stronger dollar and a weaker yen -- all of which are fundamentally positive for Japan stocks," said Yoshihiro Okumura, general manager at Chibagin Asset Management.
But, "the risk-off investor mood and jolt to the world s growth markets is trumping these facts," he said, according to Dow Jones Newswires.
The Fed said Wednesday the US economy was growing firmly enough to further trim its colossal stimulus, which will shrink to $65 billion a month from February, spelling a steady tightening of global financial conditions.
Investors took flight after the announcement, which stoked fears of a capital shift from emerging markets as dealers look for safer investments back home.
Sharp interest rate hikes by Turkey and South Africa on Wednesday failed to stem heavy losses in their currencies resulting from these outflows.
Russia, Brazil and Argentina also faced further falls in their units, despite the International Monetary Fund stressing there was not a general panic and that each faces specific challenges.
