Greenback surges more than 1% against yen
On Monday, the evergreen buck went up more than 1% against the Japanese yen as Japan’s shares led a surge in Asian markets powered by a robust American jobs post as well as hopes for extra economic stimulus in Japan.
The currency pair USD/JPY traded 101.95, up 1.3% for the day. This pair had dropped to minimums of 99.97 in the wake of Friday’s jobs data.
The currency pair EUR/JPY leapt 1.22%, trading at 112.43.
Japan’s Nikkei soared 3.98% after the country’s Prime Minister Shinzo Abe’s ruling coalition managed to increase its majority in the upper house during parliamentary elections on Sunday.
The win for Abe’s coalition powered hopes for a new package of stimulus measures to drive economic growth.
Risk appetite had already been powered after data on Friday revealing that the American economy gained up to 287,000 jobs in June, which is higher than the 175,000 jobs forecast.
The stronger than expected jobs data showed that the economic recovery is back on track.