Yen stabilises after sharp drop as fed shift and election risks loom

The Japanese yen pared earlier losses on Monday, trading around 154.62 per dollar after last weeks sharp selloff. The currency had fallen nearly 1% on Friday following President Trumps nomination of Kevin Warsh as the next Federal Reserve chair, a move seen as reinforcing a stronger dollar. Pressure on the yen was compounded by Prime Minister Sanae Takaichis comments endorsing the benefits of a weaker currency for exporters, while investors brace for volatility ahead of the February 8 snap election. Expectations of fiscal stimulus continue to weigh on the yen and government bonds, even as the Bank of Japan held its policy rate at 0.75%, keeping borrowing costs at their highest level since 1995.

Powered by Capital Market - Live News