Dollar drives to two-plus-year high against yen

Posted On: December 26, 2012

The value of the U.S. dollar pushed to its top rate in more than two years against the Japanese yen on Wednesday, the first day of rule of the Pacific Rim nation's new prime minister, according to Reuters.

Finance Mininster Taro Aso said Prime Minister Shinzo Abe, who made vividly clear his intentions to implement large amounts of monetary easing to spur the globe's third-largest economy prior to being elected this past Sunday, directed him to implement a stimulus plan.

He noted Abe told him he did not have to adhere to previously agreed limits on new bond issuance.

The comments of the finance minister are believed to be approval for additional sales of the yen. Japan has established an issuance cap of 44 trillion yen.

The world's reserve currency notched its top level against the yen since the middle of September 2010.

Agence France-Presse reports the yen has demonstrated a very steady loss in value since it became clear that Abe was set to assume leadership of Japan. But trade is slow on Wednesday, the day after Christmas, as many market participants are on vacation.

Category: Industry News

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