Wishing Upon Abe 120 Weak-Yen Policy Seen as LDP Returns
This article is for subscribers only.
Japan’s economy shrank almost 10 percent in the half decade since Shinzo Abe was last prime minister, as a soaring yen hollowed out manufacturing. Abe’s return may be exporters’ best chance yet to halt the damage.
Abe’s calls for unlimited central bank liquidity have taken the yen down about 5 percent against the dollar since mid-November, as his Liberal Democratic Party led pre-election polls, then romped to victory Dec. 16. Futures traders boosted bets on yen declines to the most since July 2007, when the currency traded around 120, compared with about 84 today.