Yen remains weak from Abe’s re-election.
This article is originally referred from FXNet Market News.
The Yen plummeted against most major currencies extending its weak string since Shinzo Abe was re-elected to remain Prime Minister. The Japanese currency was at its worst performance since November of 2014.
A slight boost came across the currency’s way as global markets were rattled by a disappointing June Job’s report in the US, and Britain’s uncertainty following the BREXIT.
USD/JPY was at a session low of 103.95 and EUR/JPY was at 116.02 yen.
The meeting between former US Federal Reserve Chair Ben Bernanke and Japanese leaders had markets hoping it would lead to financial aid to finance government budgets and fight deflation, however Chief Cabinet Secretary Yoshihide Suga dismissed the possibility.
Abe has ordered a new round of fiscal stimulus spending as he’d promised in the path he took to re-election, which limited gains the Japanese yen saw from investors who turned to the safe haven, moving away from volatile markets.
“Globally we are seeing an environment where investors are buying riskier assets and that is putting the yen under pressure” Petr Krpata, currency strategist said, “There is a lot of expectations of some mega stimulus from Japan. If they disappoint, we could see the yen bounce back”.
Original Source: FXNet Market News