The yen is falling as election results cloud the prospects for rate hikes

The Japanese yen weakened against the dollar in Monday morning trading after the ruling coalition lost its majority in Sunday’s general election.
Investors sold the yen as they thought political uncertainty could delay rate hikes by the Bank of Japan.

The currency was hovering in the upper range of 153 yen against the dollar on the Tokyo currency market.
Market analysts say uncertainty about the composition and policies of the next government could hamper the Bank of Japan’s efforts to raise interest rates.

But the yen’s decline boosted stock investors. The Tokyo Stock Exchange’s benchmark Nikkei Average reversed early losses, at one point gaining 700 points, or about 1.9 percent.
Investors bought export-related companies that would benefit from a weaker yen.