Yen Above 100 as Japan Prepares for Elections This Weekend

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.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza