Having traded in a tight range over the past few days, a buoyant dollar finally broke above the 155 yen level for the first time since 1990 in the previous session, and was last steady at 155.34 yen in early Asia trade.
The breach of the 155 yen level comes as the BOJ meets to discuss monetary policy, though expectations are for the central bank to keep its short-term interest rate target unchanged following last month's landmark exit from negative rates.
"We expect the BOJ meeting to deliver a marginally hawkish hold outcome," said Carl Ang, fixed income research analyst at MFS Investment Management.
Continued expectations of gradual policy tightening and a low terminal policy rate make it difficult for the yen to appreciate significantly, even if at historically depressed levels."
The dollar steadied at 105.79 against a basket of currencies, pulling away from a nearly two-week low hit in the previous session.
Persons:
Carl Ang, Kazuo Ueda, Justin Smirk
Organizations:
Bank of Japan, MFS Investment Management, Reserve Bank of Australia, Westpac, New Zealand
Locations:
Tokyo, Asia, Australia