Yen falls to 20-month low on dollar
THE yen weakened past 85 per dollar for the first time since April 2011 as Shinzo Abe was approved as Japan's prime minister amid expectations he will push the central bank to increase cash infusions into a deflation-plagued economy.
Abe is calling for a mix of aggressive monetary policy easing and big fiscal spending to beat deflation and weaken the yen.
He is pressuring the Bank of Japan to adopt a 2pc inflation target that would auger for a weaker currency, threatening changes at the central bank if his wishes are not met.
The euro rose 0.8pc to 112.92 yen, a 16-month high, and was at $1.3244 against the dollar, up 0.5pc.