The dollar held near a one-week high against the yen on Friday ahead of Japan’s upper house elections, which could add momentum to Prime Minister Shinzo Abe’s aggressive push for monetary easing to fight deflation.
The Australian dollar rose after China’s central bank announced long-awaited interest rate reforms, a move it said would help lower financing costs for companies. China is a major export destination for Australia.
Opinion polls show Abe’s ruling Liberal Democratic Party and its New Komeito Party coalition partner are on track to win a hefty majority. That would give him more freedom to push his agenda of monetary easing, public spending and structural reform, which could weigh on the yen.