THE Australian dollar was little changed against its US counterpart today, but it hit a 19-month intraday high against the yen as investors predicted Japan's new government would encourage a return to reflationary policy by the Bank of Japan.
The Aussie hit an intraday high of 88.98 yen, its strongest level since May 2011, after the Liberal Democratic Party swept to victory yesterday. Shinzo Abe, head of the LDP, made strong campaign pledges for an aggressive new monetary policy, big public works spending to pump up growth, and a harder line against China in territorial disputes.