* BOJ makes open-ended commitment to buy assets
* C.bank doubles its inflation target to 2 pct
* Yen slips briefly but later rises
By Masayuki Kitano
SINGAPORE, Jan 22 The yen briefly fell against
the dollar on Tuesday after the Bank of Japan surprised markets
by adopting an open-ended commitment to buy assets, but later
regained ground as the new scheme for additional purchases only
comes into effect next year.
The BOJ, which has been under intense political pressure to
overcome deflation, also doubled its inflation target to 2
percent as had been widely expected.
The dollar rose to as high as 90.18 yen right after
the BOJ's decision, nearing a 2-1/2 year high of 90.25 yen that
had been set on Monday.
The greenback, however, later sagged back down and last
fetched 89.19 yen, down 0.5 percent on the day.
The BOJ met expectations by setting a 2 percent inflation
target and delivered a surprise by adopting the open-ended
pledge to buy assets, said Roy Teo, FX strategist for ABN AMRO
Bank in Singapore.
Still, one point to note is that asset buying under the
open-ended pledge is only set to start from 2014, he said.
"From 2014 onwards it's positive... From now until then they
are not doing anything more aggressive to weaken the yen," Teo
Stop-loss selling added to the dollar's drop, said Jeffrey
Halley, FX trader for Saxo Capital Markets in Singapore.
"The BOJ increase in asset purchases is only commencing in
2014. So no strong immediate increase in easing," Halley said.
"This was combined with the whole street having dollar/yen
stops under 89.50 yen," he added.
The euro rose to as high as 120.18 yen after the BOJ's
decision, but last stood at 118.75 yen, down 0.6 percent on the