Dollar Hits 8-Month High above 152 Yen in New York

New York, Oct. 7 (Jiji Press)–The dollar briefly climbed above 152 yen in New York trading Tuesday, its highest level in about eight months, as yen selling accelerated amid concerns that Japan’s fiscal situation may deteriorate. The yen also weakened against the euro, with the European currency hitting an all-time high above 177 yen. At 5 p.m., the dollar was at 151.85-95 yen, up 1.15 yen from a day before. The euro stood at 177.08-18 yen, up 0.97 yen. Speculation is growing that economic stimulus measures advocated by Sanae Takaichi, the new leader of Japan’s ruling Liberal Democratic Party who is widely expected to become prime minister later this month, will widen the country’s fiscal deficit. Takaichi is seen as favoring monetary easing and not wanting the Bank of Japan to raise interest rates, which has placed increased selling pressure on the yen. Since Takaichi won the LDP leadership election on Saturday, the yen has been weakening across the board against major currencies, depreciating by more than 4 yen against the dollar from Friday. Meanwhile, many technology issues on the New York stock market suffered losses on Tuesday, spurring safe-haven buying of the dollar and contributing to the yen’s depreciation. END [Copyright The Jiji Press, Ltd.]