Dollar climbs against yen on Abe election win

| Updated: October 25, 2017 05:07:01

Dollar touches three-month high

The dollar rose to a three-month high against the yen on Monday, with an emphatic election victory for Japan’s ruling party keeping yen-weakening stimulus measures at the heart of government policy.

The dollar index against a basket of six major currencies rose to 93.872, its highest since Oct. 6, before pulling back to 93.767, up 0.05 per cent on the day, reports Reuters.

The US currency was up 0.25 per cent at 113.79 JPY=, losing a bit of momentum after earlier touching 114.10, its highest since July 11. It had already gained about 0.9 per cent on Friday.

The dollar was supported as US yields rose as the progress in tax reforms boosted expectations of increased US Government borrowing and a possible pickup in inflation.

The euro was 0.15 per cent lower at $1.1769 EUR=, extending losses from Friday when it lost 0.6 per cent.

The ECB holds a policy meeting on Thursday, at which policymakers are seen cutting bond purchases but voting for an extension in stimulus.

The New Zealand dollar slipped to a five-month low of $0.6932 NZD=D4 against the broadly stronger US currency and last traded at $0.6964. The kiwi shed about 3.0 per cent last week.

The Australian dollar was little changed at $0.7820 AUD=D4.

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