NEW YORK (AP) -- The dollar is falling against the yen after the Bank of Japan set a 2 percent inflation target and said it planned to buy bonds next year to keep interest rates low.

The dollar fell to 88.71 Japanese yen in afternoon trading from 89.73 yen late Monday.

The dollar was practically unchanged against the euro after German survey reported a sharp rise in investor confidence in January and sales of U.S. homes slipped last month.

The euro rose to $1.3317 from $1.3316. The British pound rose to $1.5865 from $1.5828.

The dollar fell to 0.9286 Swiss franc from 0.9325 Swiss franc.

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