The yen held firm in Asia on Thursday, having risen broadly on the back of a slump on Wall Street as expectations grew the Federal Reserve could scale back stimulus as early as next week.
News that Congress has reached a bipartisan budget deal that would end three years of impasse and fiscal instability was seen clearing a potential hurdle for the Fed to taper its massive bond-buying program.
The selloff in risk assets prompted a squeeze on short yen positions, a very crowded trade recently. That saw the euro slip to 141.20 yen, pulling further away from a five-year peak of 142.19 set on Tuesday.
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