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Yen Plunges the Most Since 2014 on Abe’s Fiscal Stimulus Plans

  • Prime minister announces plans after party election gains
  • Haven demand loses luster on speculation central banks in play
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Can Abe Successfully Implement His Fiscal Stimulus Plans?

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The yen tumbled by the most since October 2014 as Japanese Prime Minister Shinzo Abe said he planned to add fiscal stimulus following the ruling party’s victory in Sunday’s upper-house elections.

Japan’s currency weakened against all of its 31 major peers after Abe, speaking in Tokyo on Monday, repeated his pledge for action on a stimulus package. He will order measures to support domestic demand, including plans to speed up the construction of high-speed trains. Demand for haven, which has supported the yen, was curbed as U.S. equities surged to an all-time high.