Dollaryen hits 153.88
Dollar index eyes largest monthly rise since 2022
AUD, NZD touch 212 month lows

SINGAPORE, Oct 28 Reuters The yen sank to a threemonth low on Monday as investors figured the loss of a parliamentary majority for Japan39;s ruling coalition in weekend elections would slow interest rate rises, while the U.S. dollar headed for a monthly gain on rising Treasury yields.

In the Asia session, the yen weakened as far as 153.88 per dollar and 166.06 per euro on both counts its softest since late July. The yen was last down about 0.7 on the dollar with a 6.4 drop through October the largest of any G10 currency.

A period of wrangling to secure a coalition is now likely after the Liberal Democratic Party and its junior partner Komeito won 215 lower house seats to fall short of the 233 majority.

Traders said the election would likely result in a government without the political capital to preside over rising rates and could usher in another era of revolvingdoor leadership.

Fumio Kishida may have been just short of three years in office but successor Shigeru Ishiba is still only Japan39;s fourth prime minister in a little over four years and further instability was widely expected to breed caution at the central bank, which meets to set rates this week.

It39;s one more thing for them to consider when they should be looking at the economy, said State Street39;s Tokyo branch manager Bart Wakabayashi. Are we going to have another series of prime ministers…