By Deborah Levine and Polya Lesova, MarketWatch
SAN FRANCISCO (MarketWatch) ? The dollar climbed against the yen Monday, touching its strongest level since April 2011, as a landslide win for the Liberal Democratic Party reinforced expectations of further monetary easing in Japan.
In Sunday?s elections, the LDP and its junior coalition partner together secured more than two-thirds of the 480-member lower house of parliament ? a super-majority that enables them to override any possible opposition to legislation in the upper house.
Poll outcome sends yen tumbling
A day after the Japanese general election, Shinzo Abe's plan to launch a stimulus to get the economy on track sparks selling in the nation?s currency.
?There was a lively start to trading as the yen gapped lower in immediate response to news of the LDP?s victory,? strategists at Brown Brothers Harriman wrote in a note.
The U.S. dollar /quotes/zigman/4868099/sampled USDJPY +0.0690% ?rose to 83.83 yen, up from ?83.51 late Friday.
The greenback had surged above ?84 earlier Monday, claiming its highest level since April 2011.
Shinzo Abe, Japan?s new prime minister, pledged a large spending package aimed at reviving economic growth and said he expected the Bank of Japan to take an appropriate decision at its monetary-policy meeting ending on Thursday, according to a Wall Street Journal report. Abe, a former prime minister, has been an outspoke proponent of further monetary easing. Read: Abe to move quickly on stimulus, report says.
?The Bank of Japan is expected to increase its asset-purchase plan by (?5 trillion to ?10 trillion) at this week?s board meeting, but the greater focus will likely be on what happens now that Abe is back in power, including the appointments of the deputy governor [in March] and governor [in April],? wrote Michael Turner, fixed income and currency strategist at RBC Capital Markets, in a note to clients.
/quotes/zigman/4868099/sampled USDJPY 84.2600, +0.0581, +0.0690%Dollar gains vs. yen
The ICE dollar index /quotes/zigman/1652083 DXY -0.01% , which measures the greenback?s performance against a basket of six major currencies, rose to 79.557 compared with 79.543 in late trading Friday.
Closer to home, reports pointed to some break in the logjam in Washington over a fiscal-cliff deal. House Speaker John Boehner reportedly told President Barack Obama that he may accept higher taxes on millionaires in exchange for reduced spending on Medicare and Social Security. Read: Hopes rise for pre-Christmas fiscal cliff deal.
Hopes for a deal that would blunt economic deterioration expected to follow any expiration of tax and spending measures have tended to boost investors? appetite for riskier assets, like stocks, and reduce the dollar?s safe-haven appeal. Read: U.S. stocks gain on fiscal deal hopes.
In other currencies trading, the euro /quotes/zigman/4867933/sampled EURUSD +0.1067% ?edged up to $1.3159 from $1.3156 Friday.
The British pound /quotes/zigman/4867886/sampled GBPUSD +0.0410% ?also rose to $1.6202 from $1.6157 Friday. Last week, sterling fell on Standard & Poor?s lowered outlook for the U.K.?s triple-A credit rating.
The Australian dollar /quotes/zigman/4867876/sampled AUDUSD -0.1618% ?traded at $1.0548 versus $1.0561.
/quotes/zigman/4868099/sampled
US : ICAP Currencies
Volume: 0.0000
Dec. 18, 2012 9:42p
/quotes/zigman/1652083 US : U.S.: ICE Futures U.S.
Volume: 0.00
Dec. 18, 2012 9:32p
/quotes/zigman/4867933/sampled US : ICAP Currencies
Volume: 0.0000
Dec. 18, 2012 9:42p
/quotes/zigman/4867886/sampled US : ICAP Currencies
Volume: 0.0000
Dec. 18, 2012 9:42p
/quotes/zigman/4867876/sampled US : ICAP Currencies
Volume: 0.0000
Dec. 18, 2012 9:42p
Deborah Levine is a MarketWatch reporter, based in San Francisco. Follow her on Twitter @dlevineMW. Polya Lesova is MarketWatch's New York deputy bureau chief. Follow her on Twitter @PolyaLesova. Varahabhotla Phani Kumar in Hong Kong contributed to this report.
Source: http://www.marketwatch.com/story/dollar-gains-on-yen-some-other-major-currencies-2012-12-17
jeff fisher van der sloot heather locklear mlk memorial mlk memorial heather locklear hospitalized joplin tornado
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.