Yen, dollar rise on safety demand as U.S. House scraps tax vote

Yen Decline

Even as the U.S. budget talks stall, the yen is still headed for a weekly decline against most of its 16 major peers.

The Bank of Japan yesterday increased its asset-purchase fund to 76 trillion yen ($900 billion) from 66 trillion yen and kept its inflation target at 1 percent, while saying it will discuss “medium- to long-term price stability” at its meeting in January.

Incoming Japanese Prime Minister Shinzo Abe has called for a doubling of the central bank’s inflation goal to 2 percent and unlimited easing to revive growth.

“Yen selling has been picking up in a short period of time,” said Yoshitsugu Fujita, assistant vice president of global markets at Sumitomo Mitsui Trust Bank Ltd. in New York. “In the medium term, Abe’s ability to deliver his pledge on monetary and fiscal stimulus will remain a focus for markets.”

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