TOKYO: Having pro-business policies, Republicans’ victory in the US midterm elections led the dollar to seven-year high above against yen on Thursday in Asia.
In Tokyo midday trading, the greenback rose to 115.24 yen, well up from 114.69 yen in New York Wednesday and at levels last seen in late 2007.
The euro was at $1.2486 against $1.2484 in New York while it also edged up to 143.43 yen from 143.18 yen, ahead of a European Central Bank policy meeting later in the day.
“The yen is still facing solid selling pressure since last week´s BoJ decision (to extend its stimulus) and today´s decline is in line with that,” Toshihiko Sakai, a dealer with Mitsubishi UFJ Trust and Banking said.
US private sector added slightly more jobs in October than in September, extending an upward trend, private payroll company ADP said Wednesday.
Markets will be keeping a close eye on Friday´s official US jobs report, which will give the latest snapshot of the economy and an idea about the Federal Reserve´s latest plans for interest rates – a key factor for dollar trading.
The dollar´s latest surge against the yen that started last week was further boosted Wednesday by the Republicans´ election victory, which, raised hopes the gridlock that has paralysed Washington for years could be broken.
