* Traders say yen falls due to month-end yen selling,
* Yen fall curbed by concern on U.S. fiscal cliff, economy
* BOJ speculation also pared back ahead of election
* Boehner's comments dent budding hopes of U.S. budget deal
* Euro supported by fall in Spanish, Italian bond yields
By Hideyuki Sano
TOKYO, Nov 30 The yen dropped on Friday after
month-end selling from Japanese firms triggered some stop-loss
selling, but concerns about the deadlock over the U.S. "fiscal
cliff" helped to keep it above last week's 7-1/2-month low
versus the dollar.
The dollar rose 0.4 percent to 82.44 yen, edging
closer to last week's peak of 82.84 yen. The dollar was up more
than 3 percent this month due to speculation of radical
money-printing in Japan after an election next month.
That also helped to lift the euro to seven-month high of
Still, local traders attributed the yen's fall on Friday to
month-end selling from Japanese companies and subsequent
stop-losses selling, saying it is likely to be a one-off move.
While many market players agree the yen is likely to be in a
long-term downtrend due to chances of more easing by the BOJ and
the country's trade deficits in recent months, concerns about
the U.S. economy could counter that trend in the near term, some
analysts also said.
"If there is no progress in the U.S. debt talks, the dollar
is likely to fall below 82 yen next week," said Masafumi
Yamamoto, chief FX strategist at Barclays in Tokyo, noting
recent U.S. economic data had not been as solid as before.
Top U.S. Republican lawmaker John Boehner, speaker of the
House of Representatives, said on Thursday there had been no
substantive progress made in resolving the U.S. budget impasse
in the last two weeks.
U.S. economic growth in July-Sept was revised up to 2.7
percent on Thursday from the initial reading of 2.0 percent
growth, but the revision was boosted by restocking by
businesses, and consumer and business spending -- more direct
gauges of the economy -- were revised lower.
In addition, speculation of aggressive monetary easing by
the Bank of Japan after a likely victory of the opposition
Liberal Democratic Party on a Dec. 16 election -- the main
driver of the yen's fall this month -- is being pared back as
Opposition leader Shinzo Abe, the front-runner to become
prime minister, has called for radical change in monetary
policy, including unlimited easing, but some of his ideas did
not make into his party's official policy platform.
"I think the Abe story has gone a bit too far. Support for
Abe may not grow much. And if he does not have a sweeping
victory, investors will have to review their scenario," said
Yunosuke Ikeda, senior currency analyst at Nomura Securities.
Abe's idea has drawn criticism, not just from the ruling
party but also from possible coalition partner and business
"Abe seems to be toning down a bit. For now it's hard to
expect him to say something that would further boost speculation
of more easing," said Barclay's Yamamoto.
The euro stood near one-month high of $1.3015 hit on
Thursday, changing hands at $1.2995, up slightly from
late New York levels.
The euro has also been helped by fall in Spanish and Italian
bond yields in recent weeks, as well as relief after Greece's
international lenders agreed on an aid deal for Athens earlier
The 10-year Italian bond yield hit two-year
low on Thursday, while its Spanish peer fell to
its lowest level since March.