The Japanese Yen has weakened against most of its major peers ahead of elections for the upper-house of Japan’s parliament on July 21st.
The US Dollar came close to a one-week high against the Japanese currency ahead of the elections due to be held this weekend, the outcome of which could give Prime Minister Shinzo Abe further support for his aggressive economic reforms.
Since taking power Abe’s ruling party has introduced a hefty monetary easing programme. Polls are showing that Abe’s supporters are due to win a large majority, allowing him more leeway to push on with his agenda of monetary easing, reforms and public spending.
Adding to signs that Abe’s policy is working was data showing that Japanese investors were net buyers of foreign bonds last week after they purchased the largest amount since September 2012. Should the trend towards net buying continue, it could provide another piece of early evidence that Prime Minister Shinzo Abe’s expansionary stimulus policies are having their desired effect ahead the elections for parliament’s upper house on Sunday.
“Everybody expects Abe to gain a majority in the upper house and strengthen his position and policy that would leave the door open for more easing if needed and see dollar/yen rise,” said Niels Christensen, FX strategist at Nordea.
The Yen has also been weighed down by a stronger Dollar which has been supported by expectations that the US Federal Reserve could start scaling back its own stimulus measures. Against the Euro the Yen is little changed.
Current Japanese Yen (JPY) Exchange Rates
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 100.2766 >
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 152.8345 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 131.3915 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 79.6218 >
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 91.9727 >
(Correct as of 11:20 am GMT)
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