“The Australian dollar rose to the strongest in 19 months versus the yen after Japan’s main opposition party reclaimed power in elections yesterday on pledges of increased fiscal and monetary stimulus.
New Zealand’s dollar touched a four-year high versus the Japanese currency on prospects the election will add to pressure on the Bank of Japan to expand easing as early as this week. The so-called Aussie slid against the U.S. dollar before the Reserve Bank of Australia releases minutes tomorrow from this month’s meeting when interest rates were reduced. Australian bond yields touched three-month highs.
“We had a very large lift in the dollar-yen and yen crosses after the election result,” said Joseph Capurso, a Sydney-based currency strategist at Commonwealth Bank of Australia, the nation’s biggest lender. “The RBA minutes are likely to put a little bit of downward pressure on the Aussie because they’re likely to indicate the RBA is still open to further easing.”
If you enjoy the content at iBankCoin, please follow us on Twitter
