Currencies
Yen Rallies as Ishiba Wins LDP Leadership, Nikkei Futures Fall
- Yen strengthens more than 1%, erasing losses from earlier
- Ishiba is seen as supportive of BOJ’s gradual rate-hike plan
The yen reversed losses and surged against the dollar while Japanese stock futures fell after former defense minister Shigeru Ishiba won the leadership of the nation’s ruling party, beating a rival who opposed interest rate hikes.
The currency strengthened as much as 1.4% to 142.80 on the news, after weakening as much as 1.2% earlier on Friday. Although the Bank of Japan is independent from the government, speculation of political pressure on monetary policy had seen currency traders betting on the election result.