Previous session overview : The dollar rose against the yen Thursday in Asia due to buying by Japanese life insurance firms and importers, while speculators remained on the sidelines ahead of a U.S. Treasury auction later in the day.
Dealers said demand for the greenback among the importers was strong due to regular settlements, while institutional investors were active in foreign-asset investment on the back of the recent global trend toward higher interest rates.
Short-term-focused funds were paying attention to moves in U.S. Treasury yields because if they rise, that would be a cue for investors to increase holdings of the U.S. currency, dealers said. A higher Treasury yield increases the amount of return from holding dollar-denominated assets.
As of 0450 GMT, the dollar was at JPY82.51 from JPY82.36 Wednesday in New York. The ICE Dollar Index, which tracks the U.S. dollar against a trade-weighted basket of currencies, was at 77.712 from 77.610.
The euro, meanwhile, was at USD1.3688 from USD1.3733 and JPY113.10 from JPY113.08.
Sterling was USD1.6103 and JPY132.85 from USD1.6100 and JPY132.60 in late New York Wednesday.
The Australian dollar dipped in Asia trade Thursday as a decline in full-time workers in January weighed on sentiment. At 0530 GMT, the Australian dollar changed hands at USD1.0073, down from USD1.0132 late Wednesday.
Market expectation : The EURUSD is at USD1.3688 from USD1.3733 in New York late Wednesday as short-term investors in Asia adjust their positions ahead of the much-awaited BOE rate announcement due later in the global day, analysts said. They say views are somewhat divided over whether the BOE's stance will remain unchanged or become more hawkish given recent strong economic indicators. They add the EURUSD is also weighted by Japanese importers' USD buying against the JPY. Read more