The Japanese Yen managed to climb by 0.2% in the early part of Thursday’s European trading to the strongest level in two weeks, with the US Dollar to Yen (USD/JPY) exchange rate hitting lows of 112.2100. Japanese politics appeared to take a positive step towards stability as a number of large opinion surveys showed that Prime Minister Shinzo Abe may be able to keep his party’s dominant position in the upcoming snap election.
JPY Exchange Rate Could Climb on Political Stability
The October 22nd vote was called as Abe took advantage of a surge in popularity in his party, amid a backdrop of chaos and discord in his opposition’s. According to a poll of over 90,000 people undertaken by Kyodo news, on October 10th and 11th, Abe’s coalition counterpart is expected to achieve 30 seats, which would see the coalition team snag 319 of the 465 seats on offer. Other newspapers are forecasting Abe’s party will win around 300 seats.
If Abe manages a clean win, the political party leader should be able to remain at the helm of the political party in the leadership elections next year for the third consecutive time. This would see Abe gain the title of Japan’s longest-ever serving PM.
Meanwhile, the Indian Rupee also noted gains against the US Dollar (INR/USD) on Thursday, attaining a one-week high after climbing for four sessions in a row. So far this year the Indian Rupee has climbed by around 4%.
The US Dollar has softened slightly this week as US Federal Reserve members noted concerns regarding inflation in the latest meeting minutes.
Industry expert Stephen Innes commented:
‘The FOMC [Federal Open Market Committee] minutes indicated that the board was still profoundly divided about the slow pick up in prices.’
In other news, the Euro was able to climb to a two-week high versus the US Dollar (EUR/USD) on Thursday after some positive ecostats for the Eurozone emerged supporting speculation that the central bank will soon begin to ease its sovereign bond buying programme.
At the time of writing, the USD/INR exchange rate is trading at an interbank level of 65.1000. The USD/JPY exchange rate resides at around 112.4100. The Euro to US Dollar (EUR/USD) exchange rate is trending at levels of 1.1852.