The dollar rebounded against the yen, with short-covering by Japanese investors helping turn around the unit's overnight fall on the back of speculation the Bank of Japan may soon indicate that it is close to ending its super-loose monetary policy that has kept key rates effectively at zero, dealers said Overnight the dollar fell to a low of 117.62 yen from 118.98 on speculation that the BoJ might decide at its ongoing policy board meeting to cut the current account reserve target from the current 30-35 trln yen range, paving the way for a possible end to its quantitative easing policy The Bank of Japan began today a two-day policy board meeting "It seems that somebody took advantage of the speculation to adjust sharp increases in long dollar positions, because no one in Japan believes that such a policy shift will occur at the current meeting," Athena FX director Takashi Kudo said At 12:45 am Tokyo (0345 GMT), the dollar was quoted at 118.06 yen, compared to 117.62 yen in early Sydney trade and 118.14 in New York late yesterday, while the euro was trading at 1.1973 usd, compared to 1.1987 usd in Sydney and 1.1970 in late New York trading After this speculation-induced dollar selling petered out, the US currency then found major support around the mid-117 yen level, as Japanese retail and institutional investors emerged as buyers of the dollar, dealers said However the US unit turned slightly top-heavy after reclaiming the 118 yen mark as investors opted to wait for fresh trading leads from the release later this week of US trade data, treasury auctions and the meeting of G-8 finance ministers, dealers said