Investing.com - The dollar rose to a 9-month high against the yen on Thursday as investors priced in the likelihood that Shinzo Abe, Japanese opposition leader and champion of looser monetary policies, will win Sunday's elections and become the country's next prime minister.
In U.S. trading on Monday, USD/JPY was trading at 83.62, up 0.44%, up from a session low of 83.13 and off a high of 83.67.
The pair was likely to find support at 82.50, Wednesday's low, and resistance at 83.67, the ealier high.
In November, the Bank of Japan made no changes to the country's JPY91 trillion asset purchasing plan, though a Shinzo Abe victory could change the monetary authority's policies.
Abe has said he favors more monetary intervention to spur recovery.
The dollar, meanwhile, saw demand on concerns the U.S. fiscal cliff is drawing closer without a budget deal in place, which could contract the economy next year.
The White House and Congressional Republicans continued to differ over how to narrow deficits and pay down debts as part of a budget agreement for 2013.
Democrats have been calling for tax hikes on top U.S. earners, while opposition Republicans have called more for capping tax deductions to increase revenue and cutting more spending elsewhere.
House Speaker John Boehner, an Ohio Republican, said earlier Thursday the White House wasn't taking his party's ideas serious, which spooked investors worldwide and fueled safe-haven dollar demand.
Sweeping tax hikes and deep budget cuts are scheduled to take effect at the end of this year, and failure to address them soon could tip the U.S. economy into a recession next year.
Elsewhere, the U.S. Commerce Department reported earlier that U.S. retail sales increased by 0.3% in November from October, whose rates contracted by 0.3%.
November's figures still missed market forecasts for a gain of 0.5%, which further stoked risk-off trading sentiments.
The Department of Labor, meanwhile, reported earlier the number of people filing for initial jobless claims fell by 29,000 to 343,000 last week, beating expectations for a decline of 2,000.
The previous week’s figure was revised up to 372,000 from 370,000.
Meanwhile, official data showed that producer price inflation in the U.S. fell 0.8% last month, compared to forecasts for a 0.5% decline.
The yen, meanwhile was down against the pound and down against the euro, with GBP/JPY up 0.20% and trading at 134.72 and EUR/JPY trading up 0.46% at 109.35.
Markets are awaiting the release of the Tankan Large Manufacturers Index out of Japan later.
In U.S. trading on Monday, USD/JPY was trading at 83.62, up 0.44%, up from a session low of 83.13 and off a high of 83.67.
The pair was likely to find support at 82.50, Wednesday's low, and resistance at 83.67, the ealier high.
In November, the Bank of Japan made no changes to the country's JPY91 trillion asset purchasing plan, though a Shinzo Abe victory could change the monetary authority's policies.
Abe has said he favors more monetary intervention to spur recovery.
The dollar, meanwhile, saw demand on concerns the U.S. fiscal cliff is drawing closer without a budget deal in place, which could contract the economy next year.
The White House and Congressional Republicans continued to differ over how to narrow deficits and pay down debts as part of a budget agreement for 2013.
Democrats have been calling for tax hikes on top U.S. earners, while opposition Republicans have called more for capping tax deductions to increase revenue and cutting more spending elsewhere.
House Speaker John Boehner, an Ohio Republican, said earlier Thursday the White House wasn't taking his party's ideas serious, which spooked investors worldwide and fueled safe-haven dollar demand.
Sweeping tax hikes and deep budget cuts are scheduled to take effect at the end of this year, and failure to address them soon could tip the U.S. economy into a recession next year.
Elsewhere, the U.S. Commerce Department reported earlier that U.S. retail sales increased by 0.3% in November from October, whose rates contracted by 0.3%.
November's figures still missed market forecasts for a gain of 0.5%, which further stoked risk-off trading sentiments.
The Department of Labor, meanwhile, reported earlier the number of people filing for initial jobless claims fell by 29,000 to 343,000 last week, beating expectations for a decline of 2,000.
The previous week’s figure was revised up to 372,000 from 370,000.
Meanwhile, official data showed that producer price inflation in the U.S. fell 0.8% last month, compared to forecasts for a 0.5% decline.
The yen, meanwhile was down against the pound and down against the euro, with GBP/JPY up 0.20% and trading at 134.72 and EUR/JPY trading up 0.46% at 109.35.
Markets are awaiting the release of the Tankan Large Manufacturers Index out of Japan later.