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Yen retreats after BOJ policy tweak sparked surge

Strategists attribute some of the move to poor liquidity ahead of holidays

On Wednesday, the dollar was 0.4% higher against the yen, having plunged 3.8% in the previous session, its largest one-day drop against the Japanese currency in 24 years.    © Reuters

NEW YORK (Reuters) -- The yen fell in a choppy session on Wednesday, ceding some of the ground gained the previous day when a surprise policy tweak by the Bank of Japan lifted the Japanese currency by 4% against the dollar.

The BOJ decided to change its "yield curve control" policy on Tuesday even as it kept broad policy settings unchanged. It is letting 10-year yields move 50 basis points either side of its 0% target, wider than the previous 25-basis-point band.

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