Dollar/yen hits three-month high after Japan ruling party’s election win

TOKYO (Reuters) – The dollar extended its gains early on Monday to hit a three-month high against the yen after Japanese Prime Minister Shinzo Abe’s ruling party scored a big win in Sunday’s election.

Abe’s Liberal Democratic Party-led (LDP) coalition kept its two-thirds “super majority” in the lower house, local media said.

Abe’s victory relieved fears towards the disruption of his economic policies, which had helped the yen weaken against the dollar.

The dollar, already on a bullish footing after progress on U.S. tax reforms late last week raised prospects of a fiscal lift to the U.S. economy, was up 0.3 percent at 113.860 yen following a rise to 113.945, its highest since July 12.

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