Yen slumps to 20-month low following LDP victory

SYDNEY Mon Dec 17, 2012 2:52am IST

Related Topics

SYDNEY (Reuters) - The yen fell to its lowest level in over a year-and-a half against the U.S. dollar on Monday as part of a broad skid after Japan's conservative LDP party, pledged to hyper-easy monetary policy, won a landslide victory at an election.

The dollar rose as far as 84.48 yen, reaching its highest since April 2011, from around 83.50 late in New York on Friday. The euro jumped to around 111.30 yen from 109.81.

The higher-yielding Australian dollar climbed above 89.00 yen for the first time since May 2011.

Japan's conservative Liberal Democratic Party (LDP) surged back to power in an election on Sunday just three years, giving ex-Prime Minister Shinzo Abe a chance to push his radical economic recipe.

Abe has called for "unlimited" monetary easing and big spending on public works to rescue the economy from its fourth recession since 2000.

The Bank of Japan meets later this week and analysts expect the central bank will ease policy further to support an economy already in recession.

(Reporting by Ian Chua)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Economic Pulse

REUTERS SHOWCASE

Apple Result

Apple Result

Apple's iPhone sales beat Street but iPad volumes slide.  Full Article 

Nadella's Paycheck

Nadella's Paycheck

New Microsoft CEO Nadella's pay tops $80 mln with big stock awards.  Full Article 

Deregulation Impact

Deregulation Impact

Private fuel retailers to dip toe, not dive back, into India  Full Article 

Gold Import

Gold Import

RBI will not change gold import rules - sources  Full Article 

Idea Results

Idea Results

Idea Cellular Q2 profit up 69 percent  Full Article 

An RBI First

An RBI First

RBI releases minutes of financial stability council's Aug meet  Full Article 

IBM Earnings

IBM Earnings

IBM ditches 2015 operating EPS target, shares slump 7 pct  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage