A temporary rise in crude oil prices would not prompt a shift in monetary policy, Bank of Japan Governor Masaaki Shirakawa reportedly told lawmakers on Thursday.

That is why policymakers avoided using the term 'targeting,' which often implies an automatic response, he added.

Shirakawa reiterated that the BoJ will continue powerful monetary easing until 1 percent inflation is foreseen.

The central bank has set a near-term target of 1 percent for the annual increase in the consumer price index. The decision was taken unanimously by board members at the policy meeting held on February 13 and 14.

In the Asian session on Thursday, the Singapore dollar erased early losses against the U.S. dollar soon thereafter. The Singapore dollar is now trading at 1.2575 against the greenback, compared to an early 6-day low of 1.2611. The pair closed Wednesday's deals at 1.2577.

Today, Singapore will announce the inflation rate for January.

The Malaysian Ringgit recovered slightly from an early Thursday Asian session's 3-day low of 3.0360 against the U.S. dollar shortly thereafter. The pair is now worth 3.0280, compared to yesterday's closing value of 3.0308.

INDIA'S SENSEX DOWN 0.2 PCT, STATE BANK OF INDIA UP 1.4 PCT AS REPORTED NOT GIVEN MORE LOANS TO STRUGGLING AIRLINES The material has been provided by Instaforex Company - instaforex.com

INDIAN RUPEE AT 49.32/DOLLAR AT MKT OPEN (PVS CLOSE 49.22/23) The material has been provided by Instaforex Company - instaforex.com

News

• Indonesia C.bank said that inflation could rise above 5.5 pct this year if govt hikes fuel prices by more than 1000 rupiah a litre
• President Susilo Bambang Yudhoyono had said on Wednesday that fuel prices had to be raised as higher global oil prices were pressuring this year's state budget

The euro hit a new 2-month high of 0.8465 against the pound on early Thursday Asian deals at 9:55 pm ET. The next upside target level for the euro is seen at 0.85. The pair is now trading at 0.8464, compared to Thursday's close of 0.8458.

The yen gained slightly against the U.S. dollar in Asian trading on Thursday. The yen is now worth 80.12 per dollar. If the yen rises further, it may likely target the 79.8 level. At yesterday's close, the dollar-yen pair was quoted at 80.26.

INDONESIA CBANK GOV - INFLATION TO RISE ABOVE 5.5 PCT THIS YR IF GOVT RAISES FUEL PRICES BY MORE THAN 1,000 RPH/LITER The material has been provided by Instaforex Company - instaforex.com

The Swiss franc rose against the U.S. dollar in Asian deals on Thursday. As of now, the franc is trading at a 2-day high of 0.9094 against the dollar, compared to yesterday's close of 0.9104. If the franc gains further, it may likely target the 0.900 level.

Euro Advances To New 2-month High Of 0.8465 Against Pound

Franc Rises To 2-day High Of 0.9094 Against Dollar

BOJ GOV SHIRAKAWA - BOJ'S CURRENT PRICE FORECASTS DO NOT FACTOR IN PLANNED SALES TAX RISES The material has been provided by Instaforex Company - instaforex.com

JAPAN PM NODA - MARKET HAS REACTED FAVOURABLY TO LATEST BOJ EASING, WANT BOJ TO MAKE TIMELY POLICY DECISIONS The material has been provided by Instaforex Company - instaforex.com

BOJ GOV SHIRAKAWA - NINE-MEMBER BOARD SHARES STRONG RESOLVE TO CONTINUE POWERFUL EASING UNTIL 1 PCT INFLATION IN SIGHT The material has been provided by Instaforex Company - instaforex.com

The Australian and New Zealand dollars declined against other major currencies in early Asian trading on Thursday amid renewed concerns over the lingering debt situation in Europe.

Uncertainty over the implementation of Greece's debt deal dampened risk sentiment after Fitch Ratings on Wednesday downgraded Greece's credit rating to C from CCC after the confirmation of the country's second bailout package.

The Aussie also slipped after reports suggested that the Australian Prime Minister Julia Gillard called a leadership ballot in an effort to end months of building tension within the Labor government over who will lead it into the 2013 election. The call followed a week of rising tension that culminated Wednesday in the resignation of Foreign Minister Kevin Rudd.

The Australian dollar fell to a fresh 3-week low of 1.0600 against the U.S. dollar, compared to yesterday's close of 1.0639. On the downside, 1.055 is seen as the next target level for the Australian currency.

The Australian dollar slipped to 85.06 against the yen and 1.0613 against the Canadian dollar. The next downside target level for the aussie is seen at 84.8 against the yen and 1.060 against the loonie. The aussie-yen and the aussie-loonie pairs were worth 85.39 and 1.0635, respectively at yesterday's close.

Against the euro, the Australian dollar declined to a fresh 1- 1/2 -month low of 1.2491. If the aussie weakens further, it may likely target the 1.260 level. At yesterday's close, the euro-aussie pair was quoted at 1.2460.

The New Zealand dollar also edged down, hitting a 6-day low of 1.2850 against the Australian dollar and near a 2-week low of 1.6024 against the euro. The next downside target level for the kiwi is seen at 1.294 against the aussie and 1.610 against the euro. The kiwi ended Wednesday's trading at 1.2836 against the aussie and 1.5988 against the euro.

The New Zealand dollar dipped to as low as 66.34 against the yen, compared to yesterday's close of 66.55. The near term support level for the kiwi-yen pair is seen at 66.0.

Against the U.S. dollar, the New Zealand dollar declined to 0.8266. If the kiwi slides further, it may likely target the 0.825 level. At yesterday's close, the kiwi-greenback pair was quoted at 0.8292.

Investors focus on the European session, in which German IFO business climate index for February is due for release.

The U.S. house price index for December and the weekly jobless claims for the week ended February 18 are expected in the New York morning session.

GOLDMAN SACHS - IT EXPECTS BRENT TO RISE TO $127.50/BBL OVER NEXT 12 MONTHS The material has been provided by Instaforex Company - instaforex.com

The European currency dipped to more than a 2-week low of 1.2059 against the Swiss franc in early Thursday Asian trading at 8:50 pm ET. The pair is now trading near Wednesday's close of 1.2061. On the downside, the euro may target 1.20 level.

Euro Declines To More Than 2-week Low Of 1.2059 Against Franc

News

• JGB prices were seen supported by concerns about Greece's ability to stick to its austerity programme and a slowdown in European growth
• Longer ends were however weighed down by selling of a Y1.1 trln ($13.7 bln) offering of 20-yr notes
• Ten-yr JGB futures edge up 0.06 point to 142.53, while the latest 10-yr cash bond yield slips half a basis point to 0.970 pct
• The 20-yr yield rises half a basis point to 1.755 pct, while the 30-yr yield climbs one basis point to 1.930 pct

BOJ GOV SHIRAKAWA - BOOSTING QUANTITY OF MONEY ALONE WOULD NOT LEAD TO INFLATION The material has been provided by Instaforex Company - instaforex.com

The pound dropped to a fresh 3-month low of 1.4261 against the Swiss franc in the early Asian session on Thursday at 8:45 pm ET. If the pound slides further, it may target 1.41 level. The pair ended yesterday's deals at 1.4266.

News

• BOJ Gov Masaaki Shirakawa said on Thursday that a temporary rise in prices would not prompt a shift in monetary policy
• He also said that latest easing is aimed at supporting market sentiment

Pound Slips To New 3-month Low Of 1.4261 Against Franc

BOJ GOV SHIRAKAWA - TEMPORARY RISE IN PRICES WOULD NOT CAUSE CHANGE IN MONETARY POLICY The material has been provided by Instaforex Company - instaforex.com