Asian stocks reach 29-month top
  • Vote Up0Vote Down venynxvenynx
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    Relationship Between Abe and Japanese Yen





    Shinzo Abe, the longest-serving Japanese Prime Minister in history, has
    suddenly resigned on August 28, citing health reasons. He will remain in
    his post until a successor is chosen. Mr Abe said he would still
    participate in the parliamentary vote and would not completely withdraw
    from politics.To get more news about WikiFX, you can visit wikifx official website.



      On September 26, 2012, Shinzo Abe was elected as the president of the
    Liberal Democratic Party and won the general election later on December
    26 in the year. After he became the president, the Japanese yen shrank
    from the peak of 77.13, while after he became the Prime Minister, the
    country‘s currency kept slipping till June, 2015 and bottomed at 125.86.
    The reason is the well-known 'Abenomics', which aimed to stimulate
    Japan’s exports and prevent the worsening deflation by exerting a big
    depreciation in the value of the currency.



    image

      Japan‘s economy once recovered because of the Abenomics, and investors
    even regained confidence amid the successful Olympic bid. However, no
    one has ever expected that the outbreak of COVID-19 would completely
    destroyed the Abenomics and made Abe drained and resign from his post.
    After Abe announced his resignation, forex traders bought the yen
    aggressively as no one could anticipated who’s his successor and whether
    the following policy would be in line with Abes.



      On the other hand, Japan‘s stock markets went into a tailspin on the
    news of August 28. With the unwinding of carry trade and the rising risk
    aversion, the yen appeared to be strong and popular again. Under the
    Japan’s uncertain political situation coupled with the continued
    weakness of the U.S. dollar, the yen has the opportunity to maintain its
    strength in the short term and challenge the two major resistance
    levels of 104.19 and 101.48.


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