Yen strengthens despite Abe win; euro down

London

THE yen rose on Monday as financial markets shrugged off Japanese Prime Minister Shinzo Abe's widely expected election win, while a new low for eurozone inflation expectations kept the bloc's currency on the defensive.

Japan's Nikkei stock average fell 1.6 per cent. Many market participants, particularly foreign investors, sell the yen to hedge their equities positions, so the Japanese currency tends to feel upward pressure whenever stocks slip.