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
- Missouri grand jury makes decision in fatal shooting of black teen
- Hagel, under pressure, resigns as U.S. defense secretary |
- Congress signals it could back Modi's insurance reform plan
- Jindal Steel shelves $10 bln project after coal setback
- EU lawmakers say not forging ideological war against Google
The reformist government that many Indians and free-market flag-bearers had hoped would emerge after this year's election isn't in New Delhi - at least not yet. Rajasthan, derided as a poverty-stricken laggard, has taken the lead on structural reforms that, their backers argue, could also help Asia's No.3 economy as a whole to attract business and employ a fast-growing workforce. Full Article
Hyundai Motor, Kia Motors lift 2014 global sales target on China, emerging markets Full Article