* BOJ stands pat as expected, yen shows limited reaction
* Yen firmer on the day, some traders cite possible
* Euro holds steady ahead of euro zone inflation data
* Fed policy also eyed
(Updates prices, adds comments)
By Masayuki Kitano
SINGAPORE, April 30 The yen clung to its gains
against the dollar on Wednesday after the Bank of Japan held off
from fresh stimulus as expected, with some traders saying
month-end flows may have contributed to the yen's firm tone.
The dollar was down 0.2 percent at 102.42 yen, having
shown little reaction after the BOJ voted unanimously to
maintain its pledge of increasing base money, its key policy
gauge, at an annual pace of 60 trillion to 70 trillion yen
Market expectations for any imminent monetary easing by the
BOJ had waned recently, as BOJ Governor Haruhiko Kuroda has
steadfastly stuck to a view that inflation in Japan is firmly on
a path to reach the BOJ's target of 2.0 percent.
The near-term focus is the BOJ's semi-annual report due at
0600 GMT and a news conference by Kuroda at 0630 GMT.
The dollar had already weakened against the yen ahead of the
BOJ decision, with some traders attributing the decline to
possible month-end flows from Japanese players.
One trader said earlier that Japanese banks seemed to be
persistent sellers of the dollar versus the yen, while another
trader said there was talk of dollar-selling interest by
Japanese exporters at the month-end.
The yen also held firm versus the euro, which sagged 0.2
percent to 141.41 yen, down from a three-week high of
142.47 yen set on Tuesday.
The common currency struggled to gain traction against the
dollar ahead of a reading on euro zone inflation due later on
The euro eased 0.1 percent to $1.3806, having
retreated from Tuesday's intraday high of $1.3880.
The euro had come under pressure on Tuesday after a key
measure of German inflation came in at a lower-than-expected 1.1
percent on the year, raising the risk that the euro area reading
will also undershoot expectations.
"A low April print would increase the likelihood of policy
action next week," analysts at BNP Paribas wrote in a note to
clients. The European Central Bank (ECB) holds its policy review
on May 8 although it is not expected to inject any fresh
stimulus at this stage.
The U.S. Federal Reserve's policy review is also coming up
later on Wednesday. The Fed is set to continue paring stimulus
with a $10 billion taper to its monthly bond buying widely
As for when the Fed will actually start lifting interest
rates, traders said anyone seeking clarity on that front will be
left sorely disappointed.
(Additional reporting by Ian Chua in Sydney; Editing by