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Japanese traders gird for Fed to anchor yields, clip dollar's wings

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By Stanley White

TOKYO (Reuters) - Japanese investors have clipped the wings of a resurgent U.S. dollar as they position for the likelihood that the U.S. Federal Reserve will take steps to flatten the Treasury yield curve.

Ahead of the Fed's two-day policy meeting that ends on Wednesday, speculation is growing that the U.S. central bank might adopt yield targets on bonds, or some other measures to anchor long-term yields.

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