Yen fell after the parliamentary elections - 17.12.2012
Rate of the Japanese yen vs. US dollar fell this morning to its lowest level since April 2011. The USDJPY currency pair rose to the level at 84.20 (see the chart), due to the victory of Japan's Liberal Democratic Party that calls for monetary policy easing in the parliamentary elections. In this regard Tokyo Nikkei Average stock index has now reached 8-month high.
USDJPY, daily chart
The next Central Bank meeting will take place on December 19-20th, however, the expected radical monetary stimulus launching date is questionable. On December 20 the the Bank is likely to announce the expansion for asset purchasing and lending programs, in volume of 91 trillion yen for now.
In the currency market, also marked with continued weakening in the US dollar, due to last week's decision by the Fed. On Friday evening, the euro could still overcome 1.3150, and rose this morning to the highest level since May - 1.3186. Swiss franc was also traded this morning near the high of the last 7 months – the USDCHF currency pair dropped to 0.9165. The dollar index on Friday reached an 8-week low at 79.49, today it is a little higher (see the chart).
US dollar index, daily chart