By Rae Wee

SINGAPORE, Dec 10 (Reuters) – The yen looked punch-drunk on Wednesday after a sudden spill overnight, pressured by wide interest rate differentials between Japan and the rest of the world even as its central bank is widely expected to tighten policy next week.

The dollar was broadly steady and moves in other currencies ‍were muted ahead of a key Federal Reserve policy decision later in the day, where investors are wagering on a cut in what is likely to be one of the most fractious meetings in years.

The yen was little changed at 156.82 per dollar, after a 0.6% fall towards the 157 level in the previous session despite no obvious trigger.

Against the euro, the Japanese currency similarly sank to a record low overnight and remained pinned near that level on Wednesday. The Auss

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