Yen edges down as Japan stimulus hopes spur risk sentiment
On Tuesday, the Japanese yen achieved a one-week minimum versus the greenback, after a weekend election victory by the Japanese ruling coalition drove expectations of more economic stimulus and also powered risk sentiment.
Revenues in equity markets really assisted to spur selling of the Japanese yen, which had surged recently on safe haven demand after the UK’s shocking vote to abandon the European Union added to serious concerns regarding global growth.
The evergreen buck soared 0.3% to 103.05 yen and hit a peak of about 103.29 yen at one point, the strongest value since July 1.
As the Japanese yen dipped broadly, the common currency gained up to 0.5%, trading at 114.17 yen. Against the greenback, the euro grew 0.2%, hitting $1.1083.
Shinzo Abe, Japanese Prime Minister told on Monday that he’s going to instruct Economy Minister Nobuteru Ishihara on Tuesday get down to compiling a fiscal stimulus package. However, he stood away from revealing further details as for the size of the upcoming spending.