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Dollar/yen hits three-month high after Japan ruling party's election win

Published 10/22/2017, 07:00 PM
Updated 10/22/2017, 07:10 PM
© Reuters. Light is cast on U.S. one-hundred dollar bill next to Japanese 10,000 yen note

TOKYO (Reuters) - The dollar extended its gains early on Monday to hit a three-month high against the yen after Japanese Prime Minister Shinzo Abe's ruling party scored a big win in Sunday's election.

Abe's Liberal Democratic Party-led (LDP) coalition kept its two-thirds "super majority" in the lower house, local media said.

Abe's victory relieved fears towards the disruption of his economic policies, which had helped the yen weaken against the dollar.

© Reuters. Light is cast on U.S. one-hundred dollar bill next to Japanese 10,000 yen note

The dollar, already on a bullish footing after progress on U.S. tax reforms late last week raised prospects of a fiscal lift to the U.S. economy, was up 0.3 percent at 113.860 yen following a rise to 113.945, its highest since July 12.

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