* USD stalls near 100 yen, due to hefty offers at the big
* Fed minutes fans QE exit speculations, helps dollar
* Minutes partly discounted due to poor March payrolls
* Yen pressured after BOJ's aggressive easing
* Aussie slips after disappointing jobs data
By Hideyuki Sano
TOKYO, April 11 The dollar hovered near a
four-year high against the yen on Thursday after the minutes of
the U.S. Federal Reserve's
March meeting raised expectations it will scale back its
bond-buying spree by the end of the year.
Such a possibility contrasts with the stance of the Bank of
Japan Governor Haruhiko Kuroda who signalled his readiness on
Wednesday to offer further stimulus or maintain an ultra-easy
policy beyond two years if meeting the bank's 2-percent
inflation target proves difficult.
"The Fed is likely to reduce its bond buying at some stage.
Clearly it's unlikely to keep buying bonds for two years," said
Minori Uchida, chief currency analyst at the Bank of
The dollar rose as high as 99.88 yen late on Wednesday,
having gained more than 7 percent on the yen since the BOJ last
week unveiled a radical stimulus programme that even eclipsed
the Federal Reserve's own massive plan.
There were hefty offers at a big round number of 100 yen,
from option players and Japanese exporters, prompting the
currency to ease off to 99.60 yen, down 0.2 percent from
late U.S. levels.
In addition, data from Japan's Ministry of Finance showed
Japanese investors sold a net 1.145 trillion yen ($11.5 billion)
worth of foreign bonds last week, the biggest selling in a year,
despite talk that they will buy foreign bonds after the BOJ's
Still, many market players think the dollar is set to rise
above 100 yen, which would take the greenback to highs not seen
since mid-April 2009. A break there would pave the way for a
test of the April 2009 peak of 101.45.
"We forecast USD/JPY rising to 102 at the end of Q2, 103 at
the end of Q3 and 105 at year end. Meanwhile, EUR/JPY and
AUD/JPY are likely to appreciate significantly reaching 140 and
116, respectively, this year," BNP Paribas strategist Vassili
The Fed's minutes, which were inadvertently released hours
ahead of schedule, showed a few Fed policymakers expected to
taper the pace of asset purchases by mid-year and end them later
this year, while several others expected to slow the pace a bit
later and halt the quantitative easing program by year-end.
While the minutes were described by some analysts as having
a hawkish tinge, others discounted them because they did not
reflect a dismal March payrolls report released after the
The euro retreated further from its one-month high versus
the dollar. The common currency slipped to $1.3054, down
0.1 percent from late U.S. levels and off Wednesday's one-month
high of $1.3122.
The euro fetched 129.77 yen,, after having
touched a fresh three-year high of 130.57 the previous day.
Elsewhere, the Australian dollar slipped 0.3 percent after
Australia's jobless rate rose unexpectedly to its highest in
over three years in March.
The Aussie stood at $1.0514, off 2 1/2-month high