Abe resignation has little effect on yen

Political uncertainty after Prime Minister Shinzo Abe announced his resignation in Japan did not seem to influence the yen one way or the other.

At midday in New York, the Japanese currency was trading even at ¥114.20 against the US dollar, while it had dropped 0.1 percent in relation to the euro, to ¥158.40

Meanwhile, sterling was 0.1 percent lower versus the US dollar to $2.0300 while it dropped 0.2 percent to ¥231.90 in relation to the yen and it was down 0.4 percent to £0.6835 against the euro after the governor of the Bank of England made comments which led analysts to believe that interest rates in the UK are not likely to rise again soon.

The US dollar fell 0.4 percent to $1.3910 in relation to the euro, a new record low, on the general belief that the Federal Reserve will cut US interest rates when it meets next week.

Story link: Abe resignation has little effect on yen