Yen falls BOJ note, pound hit by data

LONDON (Reuters) - The yen fell on Wednesday, giving up recent gains amid growing expectations that the BOJ will take further monetary easing measures, while the pound fell as persistent worries about credit and the economy .

The Japanese currency had been gaining support in the short term due to the repatriation of funds, as Japanese companies seek to bring home their foreign earnings for the fiscal year end.

However, a Reuters report that the BOJ may ease monetary policy as soon as next week, pushed the yen to session lows against the dollar and euro.

The Bank of Japan is leaning back into a relief of monetary policy next week, sources said, although no agreement among council members about how to justify this decision.

"The article on the Bank of Japan moved to the market, causing weakness in the yen. The market does not need many excuses to sell the yen now," said Gavin Friend, currency strategist at NAB.

Around 1225 GMT, the dollar rose nearly 0.5 percent against the yen at 90.40 yen, having hit 90.50 in early trading. The euro traded with a 0.6 percent to 123.10 yen.

The pound, already under pressure, fell after an unexpected decline in British industrial production in January. The British currency hit an 11-month minimum.

Against the dollar, the pound was down 0.5 percent at $ 1.4925, after tumbling to $ 1.4873, its lowest level since March 2.

The pound continued its downward trend after falling on Tuesday on weak economic data, concerns about the creditworthiness of Great Britain and political uncertainty.

The euro rose 0.1 percent to $ 1.3612 after touching a session low of $ 1.3546. The single currency was hit after the Fitch Ratings agency said it was keeping a negative outlook on the rating of Portugal.

That fed concerns that the peripheral economies in the euro zone could face problems similar to those of Greece, where a fiscal crisis has driven investors out of the euro in recent weeks.