Economics
Yen Falls on Tax-Delay Talk as Market Goes Long Dollar on Yellen
- Hedge-fund bets on U.S. currency switch to backing advance
- Abe aide says delay of tax increase needed to sustain recovery
This article is for subscribers only.
The yen fell to a one-month low versus the dollar after an aide to Prime Minister Shinzo Abe said Japan needs to delay a sales-tax increase, underscoring the need for the government to sustain economic growth.
Japan’s currency was the biggest loser among its developed-nation peers as stalling growth in retail sales increased the likelihood Abe will delay the tax hike, which is scheduled for next year. The dollar was little changed after rising Friday when Federal Reserve Chair Janet Yellen said higher U.S. interest rates in coming months look “appropriate.”