Yen dips as premier-elect Abe heaps pressure on BOJ
SINGAPORE (REUTERS) - The yen dipped and neared a 20-month low versus the dollar on Monday after incoming premier Shinzo Abe renewed pressure on the Bank of Japan (BOJ) to adopt a 2 per cent inflation target.
The yen, which rose on Friday on position-squaring, came back under pressure after Mr Abe said on Japanese television on Sunday that he will try to revise a law guaranteeing the BOJ's independence if his demand for a binding inflation target is not met.
The dollar rose 0.2 per cent against the yen to 84.44 yen (S$1.22). That was close to a high of 84.62 yen that had been set last Wednesday, the greenback's strongest level against the Japanese currency since April last year.
Mr Abe, who is set to become prime minister on Wednesday after his opposition Liberal Democratic Party (LDP) won this month's lower house election, has put the BOJ at the centre of political debate, urging bolder monetary stimulus to beat deflation.