U.S. DOLLAR BRIEFLY TOUCHES THREE-MONTH HIGH VS YEN OF 105 YEN

At its two day policy meeting scheduled for Oct 31-Nov 1, the Bank of Japan (BoJ) is widely expected to keep unchanged its minus 0.1 percent short-term interest rate target. The BoJ will also release their latest semi-annual Outlook for Economic Activity and Prices report which is expected to reveal a downgrade to their inflation outlook.

 BoJ governor Haruhiko Kuroda earlier on Thursday played down necessity for more easing in the short-term, squashing hopes of any surprise next week. Kuroda said on Thursday the central bank would not try to push down super-long government bond yields - even if they rise further - because it is focused on controlling the yield curve for out to 10 years.

Kuroda told parliament he saw no immediate need to change the minus 0.1 percent short-term interest rate target and the 10-year government bond yield target of around zero percent. He also rejected the idea of buying foreign-currency denominated bonds.

Analysts expect the central bank to cut next fiscal year's inflation forecast slightly, reflecting weak consumption and falling import costs from a strong yen. The review may also extend the timeframe for hitting its ambitious inflation target beyond Kuroda's five-year term that ends in April 2018.