* Yen bounces back after Kuroda mentions policy costs
* Investors suspect BOJ not far from limit in easing
* Sterling hovers below 7-week high vs dollar
* Aussie braces for current account, RBA
By Hideyuki Sano
TOKYO, Sept 6 The yen kept some distance from a
one-month low against the dollar on Tuesday after Bank of Japan
Governor Haruhiko Kuroda held back from signalling further
easing, acknowledging instead the costs of the BOJ's aggressive
The dollar is stabilising for now at around 103.45 yen
, having fallen nearly a full yen from Friday's one-month
high of 104.32.
Though Kuroda signalled his readiness to expand an already
massive stimulus programme in his speech on Monday, he did not
provide any explicit hints on the chances of the BOJ
aggressively easing policy at its next review on Sept. 20-21.
In addition many analysts took note of the fact that Kuroda
admitted for the first time that his stimulus has its costs,
even he denied the view that the BOJ's stimulus is reaching its
"For those who had been believing in a Kuroda who stresses
only the benefits of easing, the speech would have been
disappointing," said Makoto Noji, senior strategist at SMBC
"To be sure, he is unlikely to change his policy framework
given that he was preaching the benefit of stimulus. Yet many
market players might have felt that the costs are likely to
outweigh the benefits in the future," he added.
The yen also bounced back against the euro, which fell to
115.42 yen from Friday's one-month high of 116.37 yen
The common currency was little moved against the dollar,
staying at $1.1147.
The British pound maintained its firm tone,
following surprising resilience in recent UK economic data,
trading at $1.3305 in Asia after having hit a seven-week high of
$1.3376 on Monday.
The Australian dollar held firm at $0.7587,
retaining its recovery trend from last week's one-month low of
$0.7490, ahead of a decision later in the day from the
Australian central bank's policy meeting.
The Reserve Bank of Australia is expected to keep interest
rates on hold at the meeting, the last to be chaired by
long-standing governor Glenn Stevens before he retires this
"The Aussie could rise a bit if the RBA refrains from a rate
cut as expected. But given many market players think its next
rate cut will come in November at the earliest - after the next
CPI data anyway - the impact may not be so large, mostly driven
by algo-type trading," said Yukio Ishizuki, currency strategist
at Daiwa Securities.
Ahead of the RBA's policy announcement at 2:30 p.m. local
time (0430 GMT), the Aussie is bracing for June quarter current
account data at 11:30 a.m. (0130 GMT).
(Reporting by Hideyuki Sano; Editing by Eric Meijer)