Yen hits 7-year low on election-stimulus talk

New York

THE yen last week tumbled for a fourth week on speculation that Prime Minister Shinzo Abe may call an early election, consolidating his mandate for unprecedented stimulus to boost the economy.

The currency reached a seven-year low versus the dollar before the Bank of Japan (BOJ) meets this week, while policy makers surprised markets with additional stimulus at last month's gathering. The US currency rose for a fourth week against its major counterparts on indications that the Federal Reserve will perceive enough economic growth to boost interest rates next year. The pound slumped to its lowest in 14 months after the Bank of England cut growth forecast.