Sunday, July 29, 2007

Abe's LDP Loses The Upper House in Japan

The Japanese yen is up just a skosh against the dollar. With political gridlock likely in Japan due to the Liberal Democratic Party's stinging defeat in the upper house of the Japanese Diet, many questions now arise especially over whether the BOJ will hike rates next month and whether the political uncertainty will cause the yen to slip or if U.S. credit market problems will be enough to spur a further rise in the yen. The plot thickens.

Could Japan's Abe step down?

No comments: