Dollar Gains As Abe Coalition Wins Super Majority
Investing.com - The dollar posted fresh gains against the yen in Asia on Monday as results showed the coalition led by Japan's Prime Minister Shinzo Abe won a super majority in Sunday's polls.
The election showed that Abe's coalition was on track for 312 seats in the lower house of parliament, more than the 310 needed for a super majority and making it likely that more fiscal stimulus and easy monetary policy would be in store.
USD/JPY changed hands at 113.83, up 0.26%, while AUD/USD traded at 0.7813, down 0.08%. House prices from China are due later in the day for September with an 8.3% gain reported in August.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted up 0.61% to 93.57.
Last week, the dollar rose against a basket of the other major currencies on Friday as hopes for U.S. tax reforms were boosted after the Senate approved a budget measure that will allow Republicans to pursue tax cuts without Democratic support.
President Donald Trump's tax reform plans cleared a critical hurdle on Thursday after Senate Republicans adopted a budget for the next fiscal year and included a procedure that Republicans plan to use to rewrite the tax code without support from the Democratic Party.
Investors expect a fiscal boost to push up inflation, adding pressure on the U.S. Federal Reserve to raise interest rates, known as the "Trumpflation" trade.
But Republicans have yet to produce a tax reform bill amid divisions over what cuts to make and how to pay for them and analysts have warned that the White House still faces a long battle to push through its agenda.
Sterling was broadly higher amid hopes for a breakthrough in Brexit negotiations after British Prime Minister Theresa May met with European Union leaders in Brussels.
The New Zealand dollar dropped almost 1% on Friday and NZD/USD ended the week down 2.75% after a surprise election outcome spar
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