Japanese yen higher as market eyes US politics

[NEW YORK] The yen headed higher again on Monday while the dollar slipped against the euro amid a paucity of economic news ahead of Donald Trump's presidential debate showdown against Hillary Clinton.

The yen continued to defy the Japanese central bank, which adopted innovative new measures last week aimed at reversing deflationary pressures without strengthening the currency.

At 2100 GMT Monday, the yen pushed to 112.87 per euro and 100.30 per dollar.

The dollar continued to sag meanwhile after the Federal Reserve indicated a very slow pace of rate rises over the next year, with the first possibly in December.

The euro rose to US$1.1254 in late trade.

Markets were increasingly focused on the US presidential race after polls showed Republican Trump neck and neck with Democrat Clinton.

"With the Fed out of the way, and not now in play until December... it is the (election) that should now dominate market psychology for the next six weeks," said Ray Attrill, a forex strategist at National Australia Bank.

AFP