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Political risk seeps into yen trade as Japan’s Abe faces popular upstart in October election
It’s been five years since politics captured much attention from the foreign-exchange world in Japan, but traders are now gaming out potential scenarios for the yen after the Oct. 22 general election. The consensus view is still for Prime Minister Shinzo Abe’s coalition to sail to a comfortable third-straight majority in the Lower House, ensuring years more of Abenomics and the weak yen it’s produced. Even so, the situation is more fluid than anticipated just months ago, with the sudden rise of new political parties that — with a plurality of voters undecided — could yet deal Abe a setback that calls into ... (full story)