Yen slumps to seven-year low on Abe's snap poll

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The Japanese yen has plunged to a seven-year low against the dollar in the wake of prime minister Shinzo Abe's announcement of a snap December poll.

The yen fell 0.4% against the dollar in early morning trading to stand at 117.38 yen per dollar, its weakest point since October 2007. At the start of the year, it was trading as high as 105 yen per dollar.

Overnight, the Nikkei 225 fell 0.32% to 17,289. Top fallers included medical firm Terumo and J Front Retailing.

On Tuesday, the Japanese prime minister announced he will delay a proposed sales tax rise and call an election two years ahead of schedule. He is expected to win the election, despite a fall in popularity.

After taking power in 2012, Abe launched 'Abenomics', a mixture of stimulus and reform measures designed to break the deflationary cycle and return Japan to growth.

However, this week it was revealed Japan's economy had slipped back into recession, with GDP shrinking for a second successive quarter.

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