The yen has continued to rise against the US currency ahead of meetings of the Federal Reserve and the European Central Bank.

Japan's currency rose to 119.82 versus the dollar and162.32 against the euro this morning.

At the meetings - held today and tomorrow - the two banks are expected to leave interest rates unchanged, a recent Bloomberg News survey has shown.

In the study of 22 economists, all believed that the European Central Bank would hold rates until June, when they forecast the president will increase them to four per cent.

"The markets are fixated on the Fed and ECB policy meetings," Toru Tanaka, senior manager of treasury and foreign exchange, told Bloomberg.

"Ahead of the key events, Japan's currency is facing the position adjustment of yen shorts to lessen risk."

Meanwhile, Sue Trinh, a currency strategist at RBC Capital Markets, said that rate cuts at the Federal Reserve were unlikely, which should support the dollar.

Mitsuru Sahara, senior foreign exchange manager at Bank of Tokyo-Mitsubishi UFJ, told the Associated Press that he expected the reserve to make a rate cut in the second half of the year.