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

REUTERS SHOWCASE

Photo

RBI Policy Review

RBI keeps rates on hold, warns on inflation  Full Article 

China iPhone Sale

China iPhone Sale

China regulator approves Apple's iPhone 6 for sale in China  Full Article 

Cleanliness Drive

Cleanliness Drive

Modi orders officials to clean loos on Gandhi's birthday.  Full Article 

Jaitley's Health

Jaitley's Health

Finance Minister Jaitley in isolation ward, may skip U.S. trip.  Full Article 

China Factory

China Factory

China final HSBC PMI steady in September on stronger global demand but risks remain  Full Article 

Vadodara Violence

Vadodara Violence

Police arrest 140 for religious clashes in Vadodara as Modi tours U.S.  Full Article 

Japan Economy

Japan Economy

Economy takes another hit as spending, factory output fall  Full Article 

AIG Bailout

AIG Bailout

Six years after AIG bailout, trial asks: was it legal?  Full Article 

Reuters India Mobile

Reuters India Mobile

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