The U.S. dollar slipped against the yen in Asian trading Wednesday after Japan's central bank announced that its decision to keep its high-liquidity monetary policy unchanged wasn't unanimous.
The dollar was trading at 107.90 yen by midafternoon in Tokyo, down 0.95 yen from late Tuesday and also below the 108.13 yen it bought in New York later that day.
The euro rose to US$1.2880 from US$1.2823 late Tuesday but fell to 139.00 yen from 139.39 yen.
The dollar also dipped against most Asian currencies. The dollar fell to 54.630 Philippine peso from 54.750, and to 1,013.00 South Korean won from 1,017.5. The dollar also weakened against the Thai baht, from 39.535 to 39.530.
Traders said that fact that the Bank of Japan's decision wasn't made unanimously triggered some yen buying, apparently because it shows some board members may be feeling the need to lower the liquidity target range soon -- a move that could be interpreted as credit tightening.
It was the first time since January 2004 that the board didn't unanimously support the policy decision.
The Bank of Japan's decision, which was in line with expectations, will maintain its liquidity target for deposits held by private financial institutions at the central bank at between 30 trillion yen (US$280 billion; euro219 billion) and 35 trillion yen.
The dollar also fell against the euro and the yen after Standard & Poor's Ratings Services said in a report that one of the main risks to credit quality among Asia-Pacific issuers is a loss of confidence in the dollar that "strains global financial systems."
While the report said the general slide in the dollar is having little immediate impact on Asian credit ratings, it warned that "any serious deterioration" in private-sector confidence in the dollar would "send alarm bells" in the global financial system.
Overnight in New York, the dollar slipped against its major counterparts in calm trading, with no major economic news or indicators affecting the market.
The New York currency market was unaffected by a speech by Federal Reserve Chairman Alan Greenspan, despite his upbeat tone on future oil prices.
The market was largely unfazed by news about the April 15-16 Group of Seven industrialized nations meeting. A U.S. Treasury Department spokesman said late Monday that the United States will restate its "strong dollar policy" but that the focus at the G7 meeting in Washington will not be on currency matters.