LONDON, Nov 14, The yen fell sharply against the
euro on Wednesday after Prime Minister Yoshihiko Noda said he
was open to dissolving the lower house of parliament later this
week and to hold elections next month.
The euro rose 1 percent on the day to 101.87 yen.
The dollar also rose 0.7 percent to 79.995 as macro funds sold
The prospect of an early election 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.