The yen rose amid speculation traders were locking in profits after Prime Minister Shinzo Abe’s victory in elections he called to win a fresh mandate for policies that have driven Japan’s currency to a seven-year low.
Australia’s dollar was near the weakest since June 2010 after Treasurer Joe Hockey said yesterday the budget deficit is deepening because of the biggest slump in the nation’s terms of trade since records began more than 50 years ago. Norway’s krone was near an 11-year low after crude sank below $58 a barrel for the first time since 2009.
“The market’s short-term reaction may well be to ‘sell the fact’,” as the result is as opinion polls predicted, said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo, by phone last night. “Still, in the medium to long term, there is no change in the trend for a weaker yen as Abenomics has won another four years for structural reforms and monetary and fiscal stimulus.”
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