Forex – Dollar slips against yen, backs off 7-year highs


Dollar comes off 7-year highs against yenDollar comes off 7-year highs against yen – The dollar slid lower against the yen on Wednesday, pulling back from seven year highs after comments by a Japanese government official dampened expectations for a Japanese general election in December.

USD/JPY was down 0.41% to 115.28, off the highs of 116.09 struck overnight, the most since October 2007.

The yen found support after a Japanese government spokesman said Wednesday it is up to the prime minister to decide when to call elections.

The yen weakened on Tuesday amid speculation that Prime Minister Shinzo Abe could call a snap election in December. Speculation that the prime minister could postpone a proposed sales tax increase, scheduled for October 2015 also weighed.

A win for Abe would indicate continued support for his for his economic and fiscal policies, which call for a weaker yen.

Demand for the dollar continued to be underpinned by expectations that the recovery in the U.S. will outstrip other major economies.

The euro was also lower against the yen, with EUR/JPY down 0.31% to 143.99.

The euro pushed higher against the dollar, with EUR/USD easing up 0.10% to 1.2486, holding above last Friday’s 26-month lows of 1.2356.

Source By Breaking News Website | BreakingNews.WS