Yen Falls, Japan’s Stocks Rise as Traders Weigh Election Impact
- Japan’s currency extends losses to about 1% against dollar
- Equities have struggled after setting record highs in July
Shigeru Ishiba following the lower house election, at the Liberal Democratic Party headquarters in Tokyo on Oct. 27.
Photographer: Toru Hanai/BloombergThe yen extended losses to 1% while Japanese stocks climbed Monday as investors mulled the implications of the Liberal Democratic Party and its coalition partner losing their majority.
The slide in the currency as far as 153.88 against the dollar came after four straight weekly declines. The yen has now given up all its gains since the Bank of Japan increased interest rates in late July, raising the risk that authorities may wade back into the market to protect the currency as the political uncertainty clouds the rate trajectory.