UPDATES ON OCT 31 2008

OCT 31 FRIDAY

Yen Rises After BOJ Lowers Interest Rates by Less

Than Expected .

The yen rose against the dollar after the Bank of Japan

lowered interest rates by less than economists had

forecast.

The yen also gained against the euro after the BOJ lowered\

its benchmark rate to 0.3 percent from 0.5 percent,

compared with forecasts for a cut to 0.25 percent. The

yen slumped the most since 1974 versus the dollar on

Oct. 28 after the Nikkei newspaper said policy makers

were leaning toward lowering rates.

Against the dollar, the yen rose to 97.77 at 2:01 p.m. in

Tokyo from 98.61 yesterday. The yen was at 125.26

versus the euro from 127.31. The euro traded at

$1.2809 from $1.2915. The yen may rise to 90 per

dollar next week, Yoshida said.