Yen under pressure as global stock markets rally

London

THE yen lost ground on Wednesday, extending losses against the dollar after recording its biggest two-day fall in almost two years, as risk appetite bounced back in the European session.

The safe-haven yen had tumbled 4 per cent against the dollar since the start of the week, its worst performance since November 2014, after Japan's Prime Minister Shinzo Abe's ruling coalition won a clear victory in upper house elections, fuelling expectations of more fiscal stimulus.