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Dollar lower vs. yen following Abe victory

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Shutterstock photo - The dollar was lower against the yen on Monday after Japanese Prime Minister Shinzo Abe's ruling coalition won a majority in parliament's upper house elections on Sunday.

During European morning trade, the dollar was down against the yen, with USD/JPY shedding 0.57% to trade at 100.03, after falling to lows of 99.61 earlier in the session.

The yen was higher following Sunday's elections in Japan's upper house, which gives the ruling coalition a majority in both houses of parliament.

The majority will allow Prime Minister Abe to continue to push through a series of structural reforms aimed at spurring economic growth and fighting deflation.

Demand for the dollar continued to be underpinned by expectations that the Federal Reserve will start to slow its bond purchase program later this year.

Over the weekend, the Group of 20 nations stressed the need for a "careful" shift away from monetary easing so that market volatility does not negatively impact on the global recovery.

Finance ministers and central bankers from the G20 nations said Saturday that future changes to monetary policy should be "carefully calibrated and clearly communicated" and added that tapering should be "calibrated" to economic conditions.

The dollar slipped lower against the euro, with EUR/USD easing up 0.15% to 1.3158.

The euro found support after Portugal's president ruled out early elections on Sunday despite a lack of consensus between political leaders on how to keep the country's bailout program on track.

Elsewhere, the dollar was lower against the pound and the Swiss franc, with GBP/USD easing up 0.11% to 1.5284 and USD/CHF sliding 0.19% to 0.9397.

The greenback was mixed to lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD rising 0.13% to 0.9191, NZD/USD down 0.19% to 0.7915 and USD/CAD losing 0.12% to trade at 1.0354.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.21% to 82.56.

The U.S. was to release private sector data on existing home sales later in the trading day. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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