Yen slips as Japan's election result clouds BOJ rate hike prospects
The yen touched a three-month low on Monday as Japan's ruling coalition lost its parliamentary majority and investors figured that would likely slow future interest rate hikes, while the dollar headed for a monthly gain on rising U.S. yields. Prime Minister Shigeru Ishiba's Liberal Democratic Party, which has ruled Japan for almost all its post-war history, and coalition partner Komeito took 209 of 465 lower house seats, public broadcaster NHK reported, with all but 20 accounted for. A period of fractious deal making is likely to ensue and with cost-of-living pressures a major issue, traders think any resulting government will pressure the Bank of Japan to take policy normalisation very slowly.
Reuters
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49 minutes ago