* Yen, Swiss franc up on attacks in Ankara, Berlin
* Yen bought back after big fall since U.S. elections
* BOJ keeps policy on hold
* Dollar index edges up near 14-year high
By Hideyuki Sano
TOKYO, Dec 20 The yen dipped only briefly after
the Bank of Japan stood pat as widely expected on Tuesday,
keeping much of its gains after separate deadly incidents in
Turkey and Germany raised security worries in the West.
The safe-haven Swiss franc also held firm near six-month
highs versus the euro. The dollar was well bid after upbeat
comments from Federal Reserve Chair Janet Yellen.
The U.S. currency last traded at 117.22 yen, showing only
minor price action after the BOJ maintained its twin targets of
minus 0.10 percent interest on some excess reserves and the zero
percent 10-year government bond yield.
Some players remained cautious ahead of Governor Haruhiko
Kuroda's news conference at 0630 GMT, where they suspect he
could strike a more hawkish tone than before, given the sharp
fall in the yen since the BOJ's previous meeting.
The dollar had slipped as low as 116.55 yen on
Monday, falling more than two yen from a 10-1/2-month high of
118.66 touched on Dec 15.
Investors were rattled after the Russian ambassador to
Turkey was shot dead by an off-duty police officer as the
diplomat gave a speech at an Ankara art gallery.
Security fears deepened on news that a truck ploughed into a
crowded Christmas market in central Berlin, killing 12 people,
evoking memories of an attack in Nice, France, in July, in which
86 people were killed.
"Given that the yen was sold the most since the U.S.
elections, it was inevitable to see some short-covering in the
yen," said Masashi Murata, senior currency strategist at Brown
Last week the yen was down about 11 percent since the U.S.
election, edging out the Mexican peso and the Turkish
lira to briefly become the worst performer after Donald Trump's
surprise election victory.
Expectations that Trump's planed tax cuts and fiscal
spending could lead to higher U.S. growth and inflation lifted
U.S. bond yields and undermined the yen.
"The dollar is rising on expectations of Trump's policies
and I think the rally will continue as long as there are
uncertain elements to his policies," said Kazushige Kaida, head
of foreign exchange at State Street.
"But markets are starting to take it as a fact, and that
suggests the dollar's rising cycle is coming near an end. Those
who got on the bus first will be starting to get off," he added.
The safe-haven Swiss franc was another strong performer. It
stood at 1.0689 per euro, having hit a six-month high of 1.0680
The U.S. dollar remained supported against many other
currencies, with the its index rising back to 103.08
from Monday's low of 102.52, coming within sight of its
14-year peak of 103.56 touched on Thursday.
The dollar was helped in part by upbeat comments from
Federal Reserve Chair Janet Yellen on the U.S. jobs market.
The euro traded at $1.0412, having slipped 0.5
percent on Monday and edging near its Dec. 15 low of $1.03665,
its weakest level since January 2003.
The British pound also dipped to $1.2355 on Monday,
its lowest in about a month and last stood at $1.2383.
The Australian dollar fell to 6-1/2-month lows of
$0.7240, turning negative for the year.
The Turkish lira dropped slightly to 3.5325 to
the dollar ahead of its central bank policy announcement later
in the day, but held above its record low of 3.6000 set earlier
(Reporting by Hideyuki Sano; Editing by Shri Navaratnam and