Yen Holds Ground Ahead of Key BOJ Test; Dollar Slips

LONDON—The yen stood firm on Monday as the Bank of Japan (BOJ) kicked off a two-day meeting that could be crucial in determining the timing of the end of the central bank’s ultra-loose stance on interest rates. The recent burst of risk appetite has given the Australian and New Zealand dollars in particular a leg up, with both nudging towards five-month highs on Monday. The U.S. dollar extended last week's fall following the Federal Reserve's signal over the possibility of interest rate cuts next year. The yen held steady at 142.41 per dollar, after gaining nearly 2 percent last week. The Japanese currency has had a volatile few…