Yen Holds Biggest Gain in a Month on Abe’s Sales-Tax Hike Delay
- Fiscal move may discourage further BOJ stimulus addition
- Weak global manufacturing reports boosting haven demand
How Will Japan Respond to Abe's Sales Tax Delay?
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The yen held its biggest gain in more than a month spurred when Japan’s Prime Minister Shinzo Abe said he will postpone an increase in the nation’s sales tax, fueling speculation the central bank will delay adding monetary stimulus.
Japan’s currency advanced versus all of its 16 major peers Wednesday after Abe told lawmakers Japan’s sales-tax increase will be delayed until 2019 and pledged structural reforms and fiscal stimulus. He added in a briefing that Japan would take broad, bold economic measures in the autumn, without elaborating. The yen also strengthened as lackluster manufacturing data from China to Europe prompted investors to plow into haven assets.