We have custom link with dotted underlined style.

How can I reduce the gap? Currently padding: 0; and line-height is not working.
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Here’s something you could try that is a bit verbose, but if you really want to close the gap you could try adding an absolutely placed pseudo element that recreates the underline.
Here’s my Fiddle.
Edit: Here’s a Fiddle updated by @bradchristie in the comments with a before and after using the OP’s styles.
And here’s my CSS: