TOKYO - Honda Motor Co said on Tuesday it expects the dollar to average 85 yen and the euro 125 yen in the October-March second half of the business year.

It had previously assumed 90 yen to the dollar and 125 yen to the euro for the second half.

Honda also lifted its global car sales forecast for the 2008/09 business year to 3.40 million units from 3.29 million.