* US jobless claims, Fed index readings bolster dollar
* Dollar 'getting over shock' of weak inflation
* Investors await Kuroda presser, after BOJ maintains policy
TOKYO, June 16 The dollar stood tall in Asia on
Friday, on track for weekly gains against a currency basket,
after upbeat U.S. economic data gave investors reason to hope
the U.S. central bank will stick with its plan to hike rates.
The dollar index, which tracks the greenback against six
major peers, added 0.1 percent to 97.491, and was up 0.6
percent for the week.
The dollar rose 0.2 percent to 111.18 yen, on track
to gain 1.1 percent for the week.
It ticked up to a session high of 111.27 yen, its highest
since June 2, after the Bank of Japan kept monetary policy
steady as expected, before quickly paring its gain.
The BOJ also upgraded its assessment of private consumption
and overseas growth, signalling its confidence that an
export-driven economic recovery was broadening and gaining
Investors awaited a news conference at 3:30 p.m. (0630
GMT)with BOJ Governor Haruhiko Kuroda, who is expected to
reassure markets that the central bank was in no hurry to follow
the Federal Reserve's tapering example, according to sources
familiar with BOJ thinking.
"With the BOJ, there were no big surprises there," said
Mitul Kotecha, head of Asia macro strategy for Barclays in
"Obviously, the dollar is reacting more positively today"
than it did on Wednesday, after the downbeat U.S. economic data
that preceded the Fed announcement.
On Wednesday, the Fed raised interest rates as widely
expected, and also released some preliminary details of its plan
to begin paring its $4 trillion-plus debt holdings.
Ahead of the central bank's announcements, however, downbeat
inflation and retail sales data earlier sent the dollar into a
"The dollar now seems to be getting over its shock from the
core CPI release," said Masafumi Yamamoto, chief currency
strategist for Mizuho Securities in Tokyo.
He noted that the Federal Open Market Committee (FOMC) was
relatively hawkish, releasing its plan for balance sheet
reduction earlier than expected and keeping the interest rate
outlook unchanged - despite market expectations for a slowing in
the tempo of rate hikes.
"It will be increasingly difficult to short the dollar, he
Thursday's run of U.S. economic data gave dollar bulls some
reason for cheer. The Labor Department said initial claims for
state unemployment benefits dropped 8,000 to a seasonally
adjusted 237,000 for the week ended June 10, lower than the
242,000 that economists had predicted.
June readings of the New York Fed's Empire State business
conditions index and the Philadelphia Fed business conditions
index also both surpassed economists' expectations.
Higher yields underpinned the dollar. The benchmark U.S.
10-year Treasury yield was last at 2.174 percent in
Asian trade, above its U.S. close of 2.162 percent. It had
fallen as low as 2.103 percent on Wednesday after the downbeat
data was published.
The euro was steady on the day at $1.1147, well below
a seven-month high of $1.1296 touched on Wednesday, and down 0.6
percent for the week.
Sterling edged up 0.1 percent to $1.2773, getting a
lift overnight after the Bank of England (BoE) came closer to
hiking interest rates than many had believed it would. As many
as three members of the BoE's policy committee surprised
financial markets by voting for a rise in interest rates. It was
still down 1.4 percent for the week so far.
The unexpectedly tight 5-3 vote came despite signs of a
slowdown in Britain's economy, and uncertainty over Britain's
political outlook since Prime Minister Theresa May's failure to
win a parliamentary majority in last week's election.
(Reporting by Tokyo markets team; Editing by Eric Meijer & Shri