Yen Gains Ground After Initial Drop

The Japanese yen slipped against the majority of most-traded currencies today after a speech of Japanese Prime Minister Shinzo Abe. The currency managed to trim losses against some of its peers and to erase them completely against others.
Abe announced early elections and said that the planned sales-tax increase will be postponed. The announcement followed yesterday’s data that showed recession of Japan’s economy. The yen sank after the Prime Minister’s speech, reaching new multi-year low versus the euro, but is currently moving higher.
USD/JPY advanced from 116.64 to 117.01 before falling back to 116.54 as of 13:21 GMT today. EUR/JPY was up from 145.21 to 145.93, while its daily maximum of 146.63 was the highest rate since October 2008.

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