Yen Falls On Biden's Win

The Japanese yen slipped against its key counterparts in the European session on Monday, as Democratic candidate Joe Biden's victory in the US presidential election helped ease some political uncertainty.

Biden topped the necessary 270 Electoral College votes, but President Donald Trump is yet to concede he has lost the key states. Analysts think that Trump's election lawsuits are unlikely to pass legal muster.

Investors are pinning hopes that Biden would push through the fiscal stimulus to get through the Covid-19 pandemic and signal a more predictable approach to trade policy.

Preliminary data from the Cabinet Office showed that Japan's leading index rose to the highest in over a year in September.

The leading index, which measures the future economic activity, rose to 92.9 in September from 88.5 in August. Economists had expected a reading of 88.6.

The yen fell to near 2-week lows of 123.20 against the euro and 115.34 against the franc, from its early highs of 122.66 and 114.62, respectively. If the currency falls further, 125.00 and 118.00 are possibly seen as its next support levels against the euro and the franc, respectively. Reversing from its early highs of 79.08 against the loonie and 70.02 against the kiwi, the yen slipped to a 4-day low of 79.70 and a 1-1/2-month low of 70.63, respectively. The next possible support for the yen is seen around 81.00 against the loonie and 72.00 against the kiwi.

The yen edged down to 103.75 against the greenback, after rising to 103.19 at 5:45 pm ET. On the downside, 105.00 is likely seen as its next support level.

The yen held steady versus the aussie, after having fallen to 75.57 at 12:45 am ET, which was its weakest level since October 14. The pair had closed Friday's deals at 75.02.

Australia building permits rose a seasonally adjusted 15.4 percent on month at 15,827.

Permits for private sector houses rose 9.7 percent to 10,238 and permits for private sector dwellings excluding houses spiked 23.4 percent to 5,189. Meanwhile, the yen rebounded to 136.04 against the pound, from a 5-day low of 136.61 seen at 2:30 am ET. The currency is likely to find resistance around the 132.00 level.

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