Yen dips to 20-month low as Abe vows easy money policy
26 December 2012
The yen fell to a 20-month low against the dollar today, buoying the benchmark Nikkei stock average to nine-month highs, on expectations that incoming Japanese premier Shinzo Abe will pursue drastic stimulus policies, including aggressive monetary easing, to boost the nation's economy out of deflation.
The dollar bought 85.25 yen in Tokyo afternoon trade after topping 85.00 yen for the first time since April 2011.
Abe, whose Liberal Democratic Party won a landslide victory in an election earlier this month, will be sworn in as premier today.
On Tuesday, he reiterated his decision to tame the strong yen to help revive Japan's economy.
Overall activity was thin, after most global financial centres were closed for the Christmas holiday.
All G10 markets except Japan were closed on Tuesday, and only Japanese and US markets were to open today.