SINGAPORE: The yen dipped against the dollar and euro in Asian trade yesterday as incoming Japanese premier Shinzo Abe stepped up pressure on the Bank of Japan to set a two percent inflation target.
The euro bought 111.23 yen in afternoon Christmas Eve trade from 110.05 yen in New York late on Friday, after Abe on Sunday threatened to revise a law guaranteeing the BoJ’s independence if it did not back his proposed inflation goal.
The dollar fetched 84.38 yen from 84.25 yen, while the single currency bought $1.3183 from $1.3181.
“The yen is finding sellers, even in thin holiday trade,” said Jason Hughes, head of premium client management for IG Markets Singapore.
“The changes in political circles in Japan mean we will see a more aggressive stance in weakening” the yen, he said.
Abe is expected to take office on Wednesday, following a landslide victory for his Liberal Democratic Party in national elections last week.
The hawkish leader has called for a two percent target in a bid to drag Japan out of years of deflation.
AFP
