Monday saw the monetary unit of Japan to drop to its lowest rate in more than 18 months against the world's reserve currency after the election of a political candidate who has said he intends to deploy wide monetary easing policies to spur the globe's third-largest economy, according to Bloomberg.
As forecast by polls, Shinzo Abe – leader of the Liberal Democratic Party – captured the Sunday election in Japan. The yen slipped against the majority of its counterpart currencies and policy makers with the central bank of Japan prepared to meet this week.
"This is going to have a tremendous impact on the fortunes of Japanese exporters and the economy," chief executive officer Ed Rogers with Rogers Investment Advisors in Tokyo told Bloomberg on Monday. "The moves in the dollar-yen indicate that the world at large believes that we're starting on the path to reflation."
Bloomberg reports the Liberal Democratic Party gained control of 294 of 480 seats in the lower house of parliament in the Pacific Rim nation. The political party of the outgoing leader lost 75 percent of its leaders, according to Japanese media cited by Bloomberg.
Policy makers with the central bank of Japan are highly likely to endorse monetary easing when convening on Wednesday and Thursday, according to Reuters.
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