Japan heads for snap election
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TOKYO, Jan 13 (Reuters) - Japan's Nikkei index surged to a record on Tuesday, while the yen sank to an all-time low against the euro and Swiss franc, as investors bet on more fiscal stimulus amid reports that the government may call a snap election next month.
Japan's wholesale inflation slowed in the year to December on sliding fuel costs, data showed on Thursday, a sign falling crude oil prices were offering some relief to companies facing rising labour and other raw material costs.
Japan's financial authorities are getting annoyed about the weak yen. And it's easy to see why. The currency early Wednesday fell to more than 159 per U.S. dollar, leaving it only a few yen shy of its weakest in more than 30 years,
Speculation over snap polls and big spending plans weakens currency, pushing traders to brace for Tokyo’s next move
Japan's economy is returning to something resembling normality for the first time in decades. That's likely to mean more volatility ahead for the yen and other Japanese assets, as investors try to make sense of this new reality.
Japanese officials have stepped up warnings against what they describe as excessive and speculative FX moves Read more at The Business Times.
Japans Finance Minister Satsuki Katayama has raised serious concerns over the rapid weakening of the Japanese yen, describing its recent movement as a one-sided depreciation, during a meeting with U.S.
Japanese authorities said on Wednesday they would not rule out any options to counter foreign exchange volatility, escalating their verbal threat of intervention as the yen sank to its lowest levels since Tokyo last intervened in the market.
The yen further edged higher against the dollar, but ING said Prime Minister Takaichi’s plan to hold a snap election weakened the likelihood the currency’s valuation would recover.