Yen soars as Japan’s Shinzo Abe wins majority

The yen gained sharply against the dollar on Monday morning as the Japanese coalition, led by Shinzo Abe, demonstrated its power by winning a clear majority in the upper house elections.

Deflation through depreciation of the currency was one of Mr Abe’s “three arrows” of reform when he took power for the second time earlier this year.

His sweeping changes, including a controversial money printing programme, could have been difficult to see through had the coalition not gained a majority, although a stronger yen could be seen as a negative overall as it diminishes the competitiveness of Japan’s exports.

Article continues after advert

Stockmarkets globally have responded positively to the news with bourses in the UK, Europe and Asia all up.