Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Dollar Gains As Abe Coalition Wins Super Majority

Published 10/22/2017, 06:53 PM
Updated 10/22/2017, 06:53 PM
© Reuters.  Dollar gains in Asia

© Reuters. Dollar gains in Asia

Investing.com - The dollar posted fresh gains against the yen in Asia on Monday as results showed the coalition led by Japan's Prime Minister Shinzo Abe won a super majority in Sunday's polls.

The election showed that Abe's coalition was on track for 312 seats in the lower house of parliament, more than the 310 needed for a super majority and making it likely that more fiscal stimulus and easy monetary policy would be in store.

USD/JPY changed hands at 113.83, up 0.26%, while AUD/USD traded at 0.7813, down 0.08%. House prices from China are due later in the day for September with an 8.3% gain reported in August.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted up 0.61% to 93.57.

Last week, the dollar rose against a basket of the other major currencies on Friday as hopes for U.S. tax reforms were boosted after the Senate approved a budget measure that will allow Republicans to pursue tax cuts without Democratic support.

President Donald Trump's tax reform plans cleared a critical hurdle on Thursday after Senate Republicans adopted a budget for the next fiscal year and included a procedure that Republicans plan to use to rewrite the tax code without support from the Democratic Party.

Investors expect a fiscal boost to push up inflation, adding pressure on the U.S. Federal Reserve to raise interest rates, known as the "Trumpflation" trade.

But Republicans have yet to produce a tax reform bill amid divisions over what cuts to make and how to pay for them and analysts have warned that the White House still faces a long battle to push through its agenda.

Sterling was broadly higher amid hopes for a breakthrough in Brexit negotiations after British Prime Minister Theresa May met with European Union leaders in Brussels.

The New Zealand dollar dropped almost 1% on Friday and NZD/USD ended the week down 2.75% after a surprise election outcome spar

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.