LONDON, Nov 14, 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 euro also rose 1.2 percent against the yen to hit a
session high of 102.10 yen.