Yen dips before BOJ rate decision

The yen slipped against the dollar and euro as investors questioned whether a possible interest rate rise by the Bank of Japan on Wednesday would do much to shore up the struggling Japanese currency.

Market players are divided over whether the BOJ will lift rates to a decade-high of 0.5 percent from 0.25 percent, and traders say the yen could move in either direction depending on what the central bank decides.

But even if the BOJ lifts rates, investors increasingly believe the yen will ultimately suffer with rates so much higher at 5.25 percent in the United States and 3.5 percent in the euro zone, and the BOJ is seen likely to take a while before tightening policy further.

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