The as-expected victory for PM Abe’s ruling coalition during Sunday’s election was met by an early weakening of the yen, with dollar-yen spiking through Y101 before the official open, to Y101.05. Euro-yen’s moves mirrored dollar-yen, the cross gaining to Y132.44 and then slipping soon after. By the time the market opened, however, dollar-yen had slipped back to Y100.70 and then fell further to Y100.18, while euro-yen fell to Y131.46. The losses deepened after Japanese stock markets opened in the red, with dollar-yen then sliding to Y99.61 low while euro-yen dropped to Y131.15. Dealers said that while Abe’s victory had been well-anticipated, the final number was smaller than expected. Some also noted the presence of sell orders from Y101.00 and Y100.00 for the move, which also set off stop-loss selling when it ploughed through Y99.80 and Y99.70. Dollar-yen stabilized around Y99.90 after the morning action, and was last holding at Y99.92, while euro-yen was at Y131.42.
