The US dollar hit a nine-month high against the Japanese yen into the lower 84-yen range on Monday on expectations that the Liberal Democratic Party (LDP)-led new government will implement massive monetary easing steps following the LDP's landslide victory in Sunday's general election.
At 4:15 p.m. (0715 GMT), the dollar traded at JPY 83.97-84.00 against Friday's 5 p.m. quotes of JPY 83.48-58 in New York and JPY 83.66-68 in Tokyo. The greenback climbed to JPY 84.15 at one point in the morning, its highest level since March 15. It also briefly touched JPY 84.55 in Oceanian trading before Tokyo market opened.
Expectations for further easing by the Bank of Japan are high, as LDP leader Shinzo Abe, who is set to become the nation's next leader, is known as his aggressive stance on monetary and fiscal policy. In Sunday's general election, the LDP and its junior coalition partner New Komeito secured 325 seats in the 480-member strong lower house, which has the power to appoint a prime minister.
Reflecting the weaker yen, buy orders overwhelmed Tokyo stocks, sending the benchmark 225-issue Nikkei Stock Average to gain 91.32 points, or 0.94 percent, from Friday to 9,828.88, the highest finish since April third.