Yen Falls to Seven-Year Low on Sales Tax Wagers

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Yen Falls to Seven-Year Low on Sales Tax WagersThe yen dropped to its lowest level in seven years against the dollar on wagers Japan’s Prime Minister Shinzo Abe won’t implement the proposed sales-tax hike anytime soon.

The yen fell 0.6 percent to trade at 115.55 per dollar at 1:31 p.m. in New York and hit 116.10, its lowest level since October 2007. The yen fell 1.1 percent to 144.27 per euro, as the shared currency advanced 0.5 percent to $1.2485

“It reinforces the bullish dollar-yen view,” Richard Franulovich, a New York-based chief currency strategist at Westpac Banking Corp., told Bloomberg News. “In retrospect, the tax hike this year probably hurt the economy more than the officials expected.”

The Brazil’s real dropped as President Dilma Rousseff reviewed a list of who to appoint to her team of economic advisors. Key candidates poised to join Rousseff’s team as finance manager include former deputy finance minister Nelson Barbosa and former central bank head Henrique Meirelles. The real dropped 0.4 percent to 2.5630 per dollar.

The Russia’s ruble plunged as countries considered adding further sanctions. The ruble dropped 1.4 percent to 46.4875 per dollar, erasing yesterday’s gains that were fuelled by the central bank’s threat to reduce the amount of funds availed to the ruble’s speculators. The ruble has also taken a beating from declining crude oil prices that spell lower revenues for Russia, which is the world’s biggest energy exporter.

The Swedish krona rallied after the country’s consumer prices slid less than expected, falling 0.1 percent from the previous year, compared with analysts’ expectation of a 0.2 percent decline. The krona rose 0.6 percent to 7.3874 per dollar after hitting 7.4534 on Nov. 7, its lowest level since August 2010. It rose 0.1 percent to trade at 9.2229 versus the euro. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com