TOKYO, Feb 3 (Reuters) - The yen fell against the dollar and the euro on Tuesday after the Bank of Japan said it would start buying shares held by Japanese banks, stirring hopes for a rise in share prices and an easing of risk aversion.
The dollar hit its intraday highs against the yen after the announcement and is now 0.4 percent higher on the day at 89.82 yen. The euro rose 0.5 percent to 115.54 yen.
"When taken alone, this is positive for shares and is likely to lead to an easing of risk aversion. It is a factor that is positive for stocks and negative for the yen," said Tomoko Fujii, head of economics and strategy Japan for Bank of America in Tokyo. (Reporting by Masayuki Kitano)