TOKYO, Nov 16: The dollar slipped against the yen Friday on persistent concerns over the US economy, with a decision by the Bank of Japan (BoJ) to leave monetary policy unchanged largely discounted, dealers said.

The greenback traded at 122.21-24 yen down from 122.32 yen in New York, but slightly up from 122.16-18 yen in Tokyo late Thursday.

Better-than-expected employment data from the United States gave the unit an early boost but it soon lost energy over deepening fears about the world’s largest economy, dealers said.

Even though some numbers pointed to a good US economy I expect a long period of slowing down, said Yasuji Yamanaka, foreign exchange manager for Nikko Trust and Banking. Japan doesn’t look very good, and the euro is the same. So no currency looks attractive.

The US Labor Department said Thursday that initial claims for regular state unemployment benefits fell 8,000 in the week to November 10 from the previous week, despite Wall Street expecting a rise of 40,000 claims.

Nomura Trust and Banking Co. Ltd. deputy foreign exchange manager Teruhisa Moriyasu said a recent slump by US Treasuries negatively affected the dollar.

In addition, technically-driven profit-taking depressed the unit, together with position-adjustments ahead of the US’ approaching Thanksgiving Day holiday season, dealers said.

If the dollar misses out the chance of testing the 123-yen level before the Thanksgiving Day holiday (on November 29), then it may not be able do so again before the end of this year, Moriyasu said.

But if there are more dollar positive developments in Afghanistan and if the US equity market maintains its uptrend, the dollar may be able to test the 123.00-yen level and extend its gains up to 123.50 yen, he said.

Meanwhile, dealers said the outcome of a two-day BoJ policy meeting, which resulted in no change in monetary policy, did not affect trading.

This was discounted 120 per cent in the market, said Toshihiko Masaki, foreign exchange manager at ABN Amro.

The euro bought $0.8840-43 against $0.8817 in New York and $0.8807-09 in Tokyo late Thursday.

Against the yen, the euro was quoted at 108.03, against 107.85 yen in New York and 107.51 in Tokyo Thursday afternoon.

Euro-dollar futures were revising expectations of future interest rate cuts, with higher rates priced in from next March, Standard Chartered Bank said in a report released in Singapore.

The peak in US dollar strength is expected to be over the next three months, with the euro expected to benefit from the smooth passage of the introduction of notes and coins and a more pro-active central bank.

In late Singapore trade, the US dollar fell to 51.910 Philippine pesos from 52.027 on Thursday and 10,608 Indonesian rupiah from 10,633.

The greenback advanced to 44.440 Thai baht from 44.435, 1.8368 Singapore dollars from 1.8335, 34.497 Taiwan dollars from 34.483 and 1,284.00 South Korean won from 1,283.35.—AFP