Yen Soars to 4-month High After Surprise BOJ Policy Tweak
LONDON—The yen surged to a four-month peak against the dollar on Tuesday after the Bank of Japan stunned markets by deciding to review its yield curve control policy and widen the trading band for the 10-year government bond yield.
While it kept broad policy settings unchanged—pinning short-term JGB yields at -0.1 percent and the 10-year yield around zero—the BOJ decided to let long-term yields to move 50 basis points on either side of its 0 percent target, wider than the 25 basis point band previously.
The dollar last traded 3.5 percent weaker at 132.35 yen. It hit a low of 132 yen, a level last seen in mid-August….