Tokyo, Oct. 24 (Bloomberg) -- The dollar fell against the yen and the euro on expectations reports this week will show U.S. consumer confidence dropped and businesses placed fewer orders, signs an economic recovery is losing steam. The yen also strengthened after Bank of Japan Governor Masaru Hayami said Japan shouldn't set an inflation target as a tool to end a four-year slide in consumer prices. That eased concern the central bank will decide at its policy meeting next week to add more money to the system, a move that would dilute the value of the currency, analysts said.
The dollar fell to 123.93 yen at 1:56 p.m. Tokyo time from 124.60 in late New York trade yesterday. It was at 97.61 against the 12-nation European currency from 97.53. ``Expectations that data showing consumer confidence may deteriorate weighed on the dollar and may keep weighing on the currency for a while,'' said Satoru Ogasawara, foreign exchange strategist at Credit Suisse First Boston in Tokyo. The dollar may fall to 120 against the yen in the coming month or so, he said.
Hayami told a parliamentary committee that ``it's inappropriate'' to set an inflation target under these conditions. ``An inflation target would be yen negative, so Hayami's comment had some impact,'' pushing the yen up, said Toru Umemoto, foreign exchange strategist at Morgan Stanley Japan Ltd. That may not last, as Umemoto sees a weakening trend for the yen and expects it to fall to 128 in the next few weeks, he said. //www.quote.bloomberg.com