The yen erased losses against the dollar after Bloomberg reported that Bank of Japan officials see little need for adding to its already unprecedented monetary stimulus at its policy meeting this month.

Board members who gather Oct. 6-7 want the opportunity to observe further economic data and developments in financial markets at home and abroad, according to people familiar with the matter. In September, BOJ Governor Haruhiko Kuroda kept his pledge to expand the monetary base at an annual pace of 80 trillion yen ($666 billion). Kuroda said inflation trends are rising and the economy will gradually recover, adding that the central bank won’t hesitate to ease policy, if necessary.

"We’re seeing a reaction in dollar-yen," said Eimear Daly, a currency strategist at Standard Chartered Plc in London. "We definitely have had these comments before coming from the Bank of Japan. There’s this lingering perception or expectation in the market that they will do more, and I think that’s one of the reasons that dollar-yen has held up so well."

The yen strengthened 0.1 percent to 119.72 per dollar as of 8:03 a.m. New York time, after falling as much as 0.3 percent.

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