2018.01.2301:58:00UTC+00Yen Edged Up as Dollar Wavers Near 3-Year Low

The yen rose marginally on Tuesday after the Bank of Japan held its monetary policy unchanged but made some minor changes to its outlook on inflation that some trader say pointed to a slightly less pessimistic central bank view on consumer prices.

The dollar lost 0.2 percent at 110.74 yen, moving near last week's four-month low of 110.19, after the BOJ maintained its policy and its economic and price projections.

The central bank recently said risks to prices are still tilted to the downside, though it did change its assessment on prices to “stable” from “weak”, a technical tweak to reflect a recent pickup in inflation, which is largely due to rise in oil prices.

The Japanese currency rose after the Bank of Japan trimmed its buying of long-dated government bonds earlier this month, fueling speculation of an eventual exit from its large stimulus.

The dollar's index against a basket of major currencies was at 90.37, not far off its three-year low of 90.104 notched on Jan. 17.

The euro traded at $1.2258, consolidating its rally after having reached a three-year peak of $1.2323 on Jan. 17.

Expectations that the European Central Bank may withdraw its stimulus gained momentum earlier this month after the accounts of its last policy meeting showed it could shift its policy communication early this year.

The British pound hit its post-Brexit referendum peak of $1.4005, buoyed by optimism that Britain will reach a favorable divorce deal with the European Union.