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Yen rallies on opposition to Bank of Japan nominee

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(Globalpost/GlobalPost)

The yen gained ground against other major currencies Tuesday after political opposition surfaced to a key Bank of Japan nominee who favors dovish policies on inflation.

At 21H00 GMT, the dollar was trading at 96.05 yen, down from 96.26 late Monday. The euro was trading at 125.19 yen, down from 125.59 yen a day earlier.

The movement came on headlines that Japan's largest opposition party opposed the nomination of Kikuo Iwata to serve as the Bank of Japan's deputy governor.

Iwata is known for wanting to give the presidential administration more control over the Bank of Japan, said Boris Schlossberg, a managing director at BK Asset Management.

A failure to win approval would sideline a prominent advocate of easy-money policies and raise questions about Prime Minister Abe's clout, he added.

If Iwata doesn't make it through "that could trigger a short-term sell-off on the dollar-yen," Schlossberg said.

Among other leading currencies, the British pound retreated against the dollar, falling to $1.4903 from $1.4915 late Monday.

The pound's decline followed weak industrial production numbers from Britain that "indicate that the UK may be dipping back into another recession," said a note from Western Union Business Solutions.

The euro slipped to $1.3035 from $1.3046 late Monday.

The dollar retreated against the Swiss franc, trading at .9468, compared with .9472 a day earlier.

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http://www.globalpost.com/dispatch/news/afp/130312/yen-rallies-opposition-bank-japan-nominee