TOKYO:- The euro held up against other major currencies in Asia on Friday after rallying on the European Central Bank’s decision not to expand stimulus for now.
The common European currency bought $1.2386 and 148.41 yen in Tokyo trade against $1.2380 and 148.27 yen in New York Thursday.
The dollar rose past 120 yen briefly on Thursday for the first time since July 2007 before easing back to 119.77 yen in New York later in the day.
The greenback fetched 119.82 yen in Asia on Friday, moving narrowly ahead of the release of a key US jobs data.
“The news that ‘the dollar hits 120 yen’ is sensational but those who are in markets calmly take it as one passing point,” Okasan Online Securities said in a note.
The dollar has gained around 10 yen against the Japanese currency since the Bank of Japan expanded its already massive easing programme at the end of October.
The euro rebounded Thursday after the European Central Bank (ECB) at its final policy meeting of the year put off a possible full easing programme to early next year.
“In spite of another downward revision to growth and inflation staff projections, the ECB delivered nothing but some futile communication changes,” Frederik Ducrozet, Credit Agricole eurozone senior economist, said in a report.
The bank on Thursday kept its key interest rates unchanged at record lows while announcing it was ready to act early next year should the euro area show signs of tipping into deflation.
The ECB’s decision to downgrade its latest inflation and growth forecasts for the next three years suggested there is room for additional monetary easing.
“Should it become necessary to further address risks of too prolonged a period of low inflation, the governing council remains unanimous in its commitment to using additional unconventional instruments within its mandate,” ECB chief Mario Draghi said.
“This would imply altering early next year the size, pace and composition of our measures,” he told a news conference in Frankfurt.