SINGAPORE, Oct 29 Reuters The yen languished near a threemonth trough on Tuesday as the loss of a parliamentary majority for Japan39;s ruling coalition in weekend elections raised uncertainty about the nation39;s political and monetary outlook.

Elsewhere, the dollar firmed near its recent high ahead of major U.S. data releases later in the week that could determine the path for Federal Reserve policy.

The yen was last 0.28 higher at 152.86 per dollar, after having slumped to a low of 153.885 on Monday its weakest level since July following Japan39;s national election on Sunday that left the makeup of the country39;s future government in flux.

Japan39;s Finance Minister Katsunobu Kato reiterated on Tuesday that the authorities would be vigilant to foreign exchange moves, including those driven by speculators.

A period of wrangling to secure a coalition is likely after Japan39;s Liberal Democratic Party and its junior partner Komeito won 215 lower house seats to fall short of the 233 needed for a majority.

All up, the risks appear skewed to looser fiscal policy than otherwise under the new government, said Carol Kong, a currency strategist at Commonwealth Bank of Australia.

Together with solid U.S. economic data and stronger prospects of a Trump win, political uncertainty in Japan can pressure dollaryen higher in coming weeks.

Heightened financial market volatility might also encourage the Bank of Japan BOJ to keep its policy interest rate unchanged for longer…