Yen up around 3 versus dollar across two sessions
Speculation mounts BOJ could revise monetary policy
Dollar index hovers around multimonth low

LONDON, Jan 13 Reuters The yen surged further on speculation that Japan could revise its ultraloose monetary policy, while the dollar hovered near its lowest level since June against major currencies.

The Bank of Japan is an outlier in clinging to stimulus while most central banks are in ratehiking mode, but signs of stickier inflation have emboldened some investors to bet that this will change, a move that should boost the yen.

It39;s easy to see why the Bank of Japan would be considering more policy tweaks at this time, though that isn39;t our base case, said Stephen Gallo, head of European FX strategy at BMO capital markets.

The yield on Japan39;s benchmark 10year government bonds breached the central bank39;s new ceiling on Friday, adding to pressure for the yield control policy to be scrapped or revised.

The central bank said on Friday it would conduct additional outright bond purchases on Monday, ahead of a planned ratesetting meeting on Jan. 1718.

The dollar at one point, slipped nearly 1 versus the yen on the day to a fresh sevenmonth low of 128.11, after a 2.4 slide on Thursday. It was last down 0.6 at 128.515 yen.

The Bank of Japan stunned markets last month by widening its 10year bond yield target, but failed to quell market distortions caused by its huge bond buying.

Had the BOJ changed policy last year…