European focus: BOJ refused to higher rates?[E]

The yen has sharply slide down against the dollar and fell versus the
euro as traders pared bets the BOJ will raise interest rates more than
once this year.
Japan's Finance Minister Sadakazu Tanigaki said today there's "no need"
for the BOJ to rush to raise borrowing costs. Remind that two days
before the central bank was likely to lift its key zero rate for the first
time in six years. The yen advanced 2.9% against the dollar this year
as the central bank prepared to abandon its zero-rate policy.
"The yen weakens amid speculations the Bank of Japan may not be as
hawkish as the market foreshadowed,'' said Steve Barrow, Bear Stearns Cos.
in London.
BOJ will discuss whether to hike rates at a two-day board meeting
ending July 14.
The central bank in March ended its five-year policy of feeding the
economy with cash, a precursor to raising rates after seven years of
deflation.
Governor Toshihiko Fukui will likely increase the key rate by 0.25%
point.
Some economists predict the central bank will make a move only once
this year.
USD gains may be limited by a wider U.S. government report today. "A
higher trade number will refocus concern on US structural problems." said
Jeremy Stretch, Rabobank Groep. "The dollar could come under some
pressure.''