The Japanese yen pulled itself up from its lowest value in nine months against the U.S. dollar on Friday as market sentiment signaled losses to the currency during recent trading sessions might have been overdone as the national election looms this weekend, Bloomberg reports.
Shinzo Abe from the Liberal Democratic Party has long been forecast to prevail during Sunday's election in the Pacific Rim nation. He has repeatedly called for monetary easing to spur the globe's third-largest economy and he set an inflation target of more than 2 percent.
The past several trading sessions have seen the country's monetary unit impacted by Abe's campaign rhetoric and expectations that the market will be flooded by the currency after the political leader prevails. The monetary unit has dropped to its lowest value since March 21.
But Friday's gains might be attributable to the yen's losses being overdone and happening too rapidly.
"There's a race to cheapen currencies and I don't think the U.S. is going to win," chief investment officer Rick Rieder with BlackRock Fundamental Fixed Income said during a media briefing this past Wednesday, according to Reuters. "Places like Europe and Japan will win the race to cheapen their currencies."
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