Yen Slumps After Japan's Election, Dollar Set for Biggest Monthly Rise in 2-1/2 Years

FOREX - SINGAPORE. The yen sank to a 3-month low on Monday as investors figured the loss of a parliamentary majority for Japan's ruling coalition in weekend elections would slow interest rate rises, while the U.S. dollar headed for its biggest monthly gain since April 2022.

In the Asia session, the yen weakened as far as 153.88 per dollar and 166.06 per euro, on both counts the softest since late July. The yen was last down about 0.7% on the dollar at 153.35, with a 6.4% drop through October, the largest of any G10 currency.