LONDON, Jan 12 (Reuters) – The yen got a boost on Thursday on expectations the Bank of Japan will review the side effects of its monetary easing, while the dollar held near a seven-month low against the euro ahead of U.S. inflation data later in the day.
The yen rose 1.3% to a session high of 130.80 per dollar following a Yomiuri report that the Bank of Japan (BOJ) will review the side effects of its monetary easing at next week’s policy meeting and may take additional steps to correct distortions in the yield curve.
The news follows the BOJ’s surprise tweak in December to its bond yield curve control, though the move has failed to address distortions caused in the bond market by the central bank’s massive bond buying.
“The report overnight emphasises that next week’s Bank of Japan meeting is live for a potential policy change,” said Chris Turner, global head of markets at ING in…
