Dollar rises 1 percent versus yen to a session high
LONDON, Nov 14, (Reuters) - The yen extended losses against the dollar on Wednesday as speculators sold the currency on the prospect that the BoJ would be coerced into further monetary easing if an opposition-led government came into power in snap elections next month.
The dollar rose 1 percent on the day to 80.17 yen on the EBS trading platform after sustained buying by macro funds and some Swiss investors. The dollar was headed for its single biggest daily gain against the yen in more than three weeks.
Chances of an early election rose after Japan's Prime Minister Yoshihiko Noda said on Wednesday he was open to dissolving the lower house of parliament later this week and to hold elections next month.
This is regarded as negative for the yen, as the most likely victor would be the main opposition Liberal Democratic Party. An LDP-led government is expected to put more pressure on the Bank of Japan to further ease monetary policy and that would weigh on the yen.
The euro also rose 1.2 percent against the yen to hit a session high of 102.10 yen.
- Tweet this
- Share this
- Digg this
DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.
Trending On Reuters
Barack Obama in India
In a glow of bonhomie, U.S. President Barack Obama and Indian Prime Minister Narendra Modi unveiled plans to unlock billions of dollars in nuclear trade and to deepen defence ties, steps they hope will establish an enduring strategic partnership. Read | Slideshow
- Video: Modi receives Obama at the airport
- "We have a deal" - insurance may unlock India-U.S. atomic trade
- U.S.-China climate deal does not put pressure on India, says Modi
- Obama backs India's solar goals, seeks support for climate talks
- Column - U.S. and India: Two democracies should join to balance China's rise
Indian economic growth forecasts pegged back, despite rate cuts: Reuters Poll. Full Article