German bank: If the Liberal Democratic Party wins big in the election, the yen may weaken further.

Volkmar Baur of Deutsche Bank said in a report that if the Liberal Democratic Party, led by Naoto Kan, wins a majority of seats in Sunday's election, the yen may further weaken. Kan's decision to call for this election could pay off, as polls indicate that his party is likely to achieve a landslide victory. Earlier, Kan mentioned the positive aspects of a weaker yen in campaign speeches, but later clarified that it was not a policy goal. However, Baur pointed out that "her initial statement seems to have had a more lasting impact on the exchange rate".