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Yen surges on BOJ policy speculation, dollar up from 7-month low

  • Yen up around 3.5% against dollar across two sessions
  • Speculation mounts BOJ could revise monetary policy
  • Dollar index hovers around multi-month low

NEW YORK, Jan 13 (Reuters) – The yen surged on Friday, adding to earlier gains on speculation the Bank of Japan (BOJ) will revise its ultra-loose monetary policy, while the dollar edged up against most other major currencies, rising off of a seven-month low.

The yen was up 1.24% against the greenback at 127.695 yen at 10:45 a.m. EST (1545 GMT). The move added to a 2.4% gain on Thursday after the Yomiuri newspaper said BOJ officials would review the side effects of the central bank’s yield curve control policy (YCC) at their meeting next week.

The BOJ is an outlier in clinging to stimulus while most central banks globally are deep into rate-hiking campaigns. But signs of stickier inflation and a possible rise in Japan’s mostly stagnant wages have convinced some investors that YCC could be…

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