Yen Rises, Underpinned by BOJ Policy Tweak; Dollar Retreats
SINGAPORE—The yen firmed on Thursday, returning towards a four-month peak against the dollar hit earlier in the week after the Bank of Japan’s surprise tweak to its bond yield control spurred bullish yen bets, while the dollar moved broadly lower.
The yen rose about 0.5 percent to 131.85 per dollar, after surging to a four-month high of 130.58 on Tuesday in the aftermath of the BOJ’s decision to allow the 10-year bond yield to move 50 basis points on either side of its 0 percent target, wider than the previous 25 basis point band.
The greenback, which rose 0.6 percent against the yen in the previous session, had failed to meaningfully recoup the 3.8 percent slump that followed Tuesday’s news….