The euro was at $1.1087-1087, down from $1.1102-1102, and at ¥114.88-90, down from ¥116.23-23.
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The Bank of Japan left markets underwhelmed on Friday. China’s Shanghai Composite Index slipped 0.3 percent to 2,984.88.
German 10-year bonds halted a two-day advance after the Bank of Japan kept its key monetary tools unchanged, in a decision that disappointed investors who predicted a bigger increase in stimulus from the Asian nation.
Additionally, the BOJ will establish a new facility in which it lends Japanese government securities (JGSs) to financial institutions, against their current account balances with the BOJ, in order that these JGSs can be pledged as collateral for the dollar fund supplying initiative.
The latest national consumer inflation data was slightly weaker than expected at -0.5% for June, while the Bank of Japan’s core inflation reading was unchanged at 0.8% for the month compared with the 2.0% target.
The dollar fell 1.8 per cent to 103.35 yen, its biggest one-day decline since June 24 – the day after the UK’s decision to leave the European Union – having earlier fallen below 103.00.
Still, while industrial output fell 1.9 percent from the year before, it rose 1.9 percent from the month before, with strong shipments related to homebuilding and other construction.
MSCI’s broadest index of Asia-Pacific shares outside Japan pulled back 0.4 per cent after hitting the highest level since Aug 11, leaving it on track for gains of 0.9 per cent for the week, and 5.4 per cent for the month.
The leading index of 300 European shares rose 0.4 percent to 1,244 points, and Germany’s DAX GDAXI also rose 0.4 percent.
Bank of Japan (BoJ) on Friday announced a further easing of monetary policy by doubling purchases of exchange-traded funds (ETF), in league with the US Fed and the Bank of England in the pursuit of 2 per cent inflation so as to spur production and investment.
US gold was up 0.4 per cent at $1,337.90 an ounce. But the measures fell short of hopes for more aggressive action. Around the same time, gold was up 0.93% to $1353.7 an ounce.
US crude futures fell to as low as $40.95 per barrel and were last down 0.2 percent at $41.06.
The dollar was half a percent lower against a basket of its peers at 96.289, having hit set a 2-week low at 96.216. It fell 78 cents to close at $41.14 a barrel on Thursday.
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OIL: In the energy market, benchmark USA crude fell 42 to $40.72 on the New York Mercantile Exchange while Brent crude, used to price global oils, fell 75 cents to $42.95 in London. Brent crude, used to price worldwide oils, fell 56 cents to $42.68 in London.
