NEW YORK (AP) — The dollar jumped to a two-year high against the yen Wednesday as a new government prepares to assume leadership in Japan.
Incoming Prime Minister Shinzo Abe has pushed the Bank of Japan to lower interest rates further to help the economy. That could weaken the yen.
The dollar rose to 85.63 Japanese yen in late trading Wednesday from 84.78 Japanese yen late Tuesday. The dollar rose as high as 85.72 Japanese yen earlier, its highest point against the yen since Sept. 21, 2010.
The dollar was mixed against most other major currencies in light holiday trading. U.S. stock markets reopened Wednesday after being closed Tuesday for Christmas. European markets remained closed Wednesday. Many currency traders take the week between Christmas and New Year's Day off.
The euro rose to $1.3220 late Wednesday from $1.3190 late Tuesday.
The British pound slipped to $1.6130 from $1.6133.
The dollar fell to 0.9135 Swiss franc from 0.9157 Swiss franc.
The dollar rose to 99.44 Canadian cents from 99.23 Canadian cents.