The Japanese Yen dropped to its lowest in more than a year and a half against the US Dollar on Monday, after a landslide election victory for the Liberal Democratic Party in the Japanese elections.
The LDP victory is expected to usher in aggressive monetary easing but most analysts expect that the prospect of loose monetary policy could cause the Yen to lose further ground in coming weeks. It all depends on the how soon policy makers start to make changes.
Meanwhile, the Euro also rose higher against the Yen getting close to levels not seen since March earlier this year
The LDP victory is expected to usher in aggressive monetary easing but most analysts expect that the prospect of loose monetary policy could cause the Yen to lose further ground in coming weeks. It all depends on the how soon policy makers start to make changes.
Meanwhile, the Euro also rose higher against the Yen getting close to levels not seen since March earlier this year
The Yen earlier hit 84.48 per Dollar, the weakest since April 12, 2011, and fell 0.5% to 110.55 per Euro, the weakest since March 21st..
The Dollar was little changed at $1.3154 per Euro.
The Euro gained late last week against all of its major peers, after European Union finance ministers agreed to put the European Central Bank in charge of the area's lenders.
The Dollar earlier climbed against higher yielding currencies as U.S. budget negotiations continued. House Speaker John Boehner, in an effort to cut a deal with President Barack Obama in order to reduce the deficit, offered to raise income tax rates on households earning more than $1 million a year in exchange for containing federal entitlement programs.
The U.S. faces a fiscal cliff of $607 billion in automatic spending cuts and tax raises, set to begin on the 1st of January 2013, unless lawmakers can reach agreement. If no such agreement is reached, the result could be that the U.S. economy will contract by 0.5% next year according to the Congressional Budget Office.
The Dollar was little changed at $1.3154 per Euro.
The Euro gained late last week against all of its major peers, after European Union finance ministers agreed to put the European Central Bank in charge of the area's lenders.
The Dollar earlier climbed against higher yielding currencies as U.S. budget negotiations continued. House Speaker John Boehner, in an effort to cut a deal with President Barack Obama in order to reduce the deficit, offered to raise income tax rates on households earning more than $1 million a year in exchange for containing federal entitlement programs.
The U.S. faces a fiscal cliff of $607 billion in automatic spending cuts and tax raises, set to begin on the 1st of January 2013, unless lawmakers can reach agreement. If no such agreement is reached, the result could be that the U.S. economy will contract by 0.5% next year according to the Congressional Budget Office.
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